If advertising expense of $483,000 is allocated on the basis of sales, the cost per cost driver rate would be ________
Luzent Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways.
Small Department Large Department
Square footage 6,750 17,250
Number of employees 1,120 480
Sales $350,000 $1,750,000
A) $0.22 per dollar of sales
B) $0.23 per dollar of sales
C) $0.25 per dollar of sales
D) $0.24 per dollar of sales
Answer: B
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