Answer the Following Questions Using the Information Below:
Stark Corporation

question 63

Multiple Choice

Answer the following questions using the information below:
Stark Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated to the two departments in various ways.
$\begin{array}{lrr}&\text { Car Rental }&\text { Truck Rental }\\\text { Number of Vehicles in fleet } & 850 & 430 \\\text { Number of employees } & 125 & 75 \\\text { Sales } & \$ 750,000 & \$ 375,000\end{array}$
-If administrative expense of $62,500 is allocated on the basis of number of employees,the cost per cost driver rate would be ________.

• A) $500.00
• B) $312.50
• C) $833.33
• D) $572.50

---

Definitions:

Manufacturing Plant

A facility where goods are produced in large quantities through the use of machinery, labor, and processes.

Time Division

The segmentation or allotment of time into distinct periods, often used in scheduling or prioritizing tasks.

Parallelism

Parallelism is the use of components in sentences that are grammatically the same; or similar in their construction, sound, meaning, or meter.

East

A cardinal direction, typically associated with the direction from which the sun rises in most geographical locations.