Sampson trucking company allocates rent costs and


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?

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