ALLOCATING OPERATING EXPENSEMILES DRIVEN Herbert Quiong owns a furniture store that offers free delivery of merchandise delivered
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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.
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Dept 1 4000 miles Dept 2 13000 miles Dept 3 8000 miles Total 25000 miles Dept 1 4000 25000 16 ...View the full answer
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