Answer:
$4366.67
Explanation:
Given: Asset book value on july 1, year 3= $57800
Salvage value= $5400
Useful life left= 6 years.
Now, computing the depreciation expense under straight line method.
Formula; Depreciation=
Useful life in months=
Next, Depreciation expense=
∴ Monthly depreciation expense= $ 727.77
Depreciation expense for last six months of year 3=
∴ Depreciation expense for last six month of year 3 is $4366.67.
Answer:
The variable rate is 0.4 $/machine-hour.
The equation fot the utility bill is .
If Matt anticipates using 1200 machine hours in January, his utility bill will be $ 2660.
Explanation:
We have two points in the year that will let us calculate the fixed utility cost and the variable utility cost.
We will end up with a equation of a line, like this
Where C (M) is the total utility cost, v is the variable utility cost per machine hour, M are the machines running hours and F is the fixed utility cost.
We have two unknowns and two equations, so it can be solved.
First we can substract the two bills (the highest and the lowest) and equal that to the equation of the line we described
The variable rate is 0.4 $/machine-hour.
Then we can replace v in one of the equations
The fixed utility cost are 2180 $/month.
The equation fot the utility bill is .
If Matt anticipates using 1200 machine hours in January, his utility bill will be $ 2660.