Question

Bell Repair Service allocates overhead based on $50 per trip to each home that requests repair work, plus $1.20 per mile driven to the home. During the past week, Bell provided repair services for 20 customers with average driving distance of 15 miles each. What is the amount of overhead allocated for the week?

Answer 1

The amount of overhead allocated for the week will be $1360.

How to calculate the amount?

The amount of overhead allocated for the week will be calculated thus:

= (20 × $50) + (15 × $1.20 × 20)

= $1000 + $360

= $1360

Therefore, the amount of overhead allocated for the week will be $1360.

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