Assignment:
Q: ALLOCATING OPERATING EXPENSE-MILES DRIVEN Herbert Quiong owns a furniture store that offers free delivery of merchandise delivered within the local area. Mileage records for the three sales departments are as follows:
Department 1: ..............4,000 miles
Department 2: ............13,000 miles
Department 3: ..............8,000 miles
The cost of using the truck for the last year, including depreciation, was $5,000. Allocate the cost of the truck among the three departments on the basis of miles driven.