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Sampson Trucking Company allocates the rent costs and dispatchers salaries to their different service departments on the basis of miles driven. Estimated costs and miles
Sampson Trucking Company allocates the rent costs and dispatchers salaries to their different service departments on the basis of miles driven. Estimated costs and miles driven are summarized below:
Rent $20,000
Dispatcher salaries $45,000
Local Delivery 620,000 miles
Long-Haul 1,450,000 miles
How much of the rent and salaries costs will be allocated to the long-haul department?
Rent Salaries
A. $14,000 $31,500
B. $31,465 $14,065
C. $6,000 $13,500
D. $13,500 $6,000
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