Answer the Following Questions Using the Information Below:
Stark Corporation

question 148

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 the facility lease expense of $384,000 is allocated on the basis of vehicles in the fleet,the amount allocated to the Car Rental Department would be ________.

• A) $249,000
• B) $255,000
• C) $267,000
• D) $261,000

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Definitions:

Imposed

Something that is enforced or applied authoritatively, often without the consent of those affected.

Intended Beneficiaries

Individuals or entities who, although not party to a contract, are intended by the contracting parties to benefit from the contract's performance.

Privity of Contracts

A doctrine in contract law that states that contracts are binding only upon the parties signing the agreement, and no third party can enforce or be obliged by the contract.

Legal Doctrine

A principle or framework of principles established through precedent in case law which guides judicial decision-making.