Problem
Sampson Trucking Company allocates the rent costs and dispatcher's 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?