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Step2247 [10]
3 years ago
15

Pronghorn Company purchased equipment for $251,930 on October 1, 2017. It is estimated that the equipment will have a useful lif

e of 8 years and a salvage value of $14,160. Estimated production is 40,300 units and estimated working hours are 20,100. During 2017, Pronghorn uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Pronghorn is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to 0 decimal places, e.g. 45,892.)
Business
1 answer:
GenaCL600 [577]3 years ago
8 0

Answer:

Pronghorn Company

Depreciation Expense under Production Hours & Production Units:

c) Production Unit:

Depreciation Rate =Depreciable amount/Production hours

= $5.90 per unit

for 1,100 units, Depreciation expense = 1,100 x  $5,90 = $6,490

b) Production hours:

Depreciation Rate = Depreciable amount/Production hours

= $237,770/20,100 = $11.83 per hour

For 530 hours, depreciation expense = 530 x $11.83 = $6,270

Explanation:

1. Data:

Pronghorn Company:

October 1, 2017

Purchase of Equipment for $251,930

Salvage value                            14,160

Depreciable amount           $237,770

2. Depreciation Expenses based on production hours and hours are some of the methods to depreciate an equipment used for production.  Using these methods, the depreciation rate is determined and then multiplied by usage (hours or units) to obtain the depreciation expense for the period.  The methods are simple and logical for depreciating production equipment.

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erma4kov [3.2K]

Answer:

0.9717 per unit sold (approx)

Explanation:

Here, we are assuming 52 weeks in a year.

Contribution margin:

= (Sales revenue - variable cost) ÷ sales revenue

= [(3.52 × 10 + 3.52 × 0.18 × 540 × 52) - (3.52 × 0.26 × 551)] ÷ (3.52 × 10 + 3.52 × 0.18 × 540 × 52)

=  [(35.2 + 17,791) - (504)] ÷ (35.2 + 17,791)

= [17,826.2 - 504] ÷ 17,826.2

= 17,322.2 ÷ 17,826.2

= $0.9717 per unit sold (approx)

5 0
3 years ago
Chris made a $6925 purchase on his credit card that has an annual interest rate of 18% that compounds continuously. If he does n
stealth61 [152]

Answer:

$11,883.35

Explanation:

The formula for calculating continuous compounding is given below

F=p*e^it

In this question:

F=future value of the amount borrowed today=?

p=amount borrowed today/Purchases made by chris through credit card=$6,925

e=mathematical constant=2.7183

i=interest per annum=18% per annum

t=number of years=3 in this case

F=6,925*e^18%*3

F=$11,883.35

6 0
2 years ago
The Dulac Box plant works two 8-hour shifts each day. In the past, 500 cypress packing boxes were produced by the end of each da
Alex787 [66]

The level of productivity is now approximately 40.6 boxes/hr

<h3>What is Productivity</h3>

Productivity refers to a ratio between a output volume and volume of input.

<u>Given data</u>

Working hours = 2*8 hours = 16 hours

New productivity = 500 + 0.3*500

New productivity = 650 box/day

New productivity =650/16 box/hour

New productivity = 40.625 box/hour

Hence, the level of productivity is now approximately 40.6 boxes/hr

Therefore, the Option B is correct.

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7 0
1 year ago
A 10 year 7% municipal bond, quoted on a 5.00 basis, is priced at 104. A 10 year 6% municipal bond, quoted on a 5.00 basis, is p
goldfiish [28.3K]

Answer:

D. 102.2

Explanation:

Using a simultaneous equation

Since the year is constant

We will use the the basis and municipal bond as our variables

So equation 1 = 7x+5y=104

Eqn ii= 6x + 5y= 101

Using eliminating method

X=3

Substitute for x in equation 1 to get the value of y

7(3) + 5y=104

5y=104-21

Y=16.6

To get the price for the percent of 6.40 at 5% basis substitute for the value of X and Y respectively in the both equation

6.4x+5y=?

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3 0
3 years ago
Viable strategic options companies should consider in tailoring their strategy to fit circumstances of emerging country markets
Pavel [41]

Viable strategic options companies should consider in tailoring their strategy to fit circumstances of emerging country markets include all of the following, EXCEPT <em>staying away from those emerging markets where it is impractical to modify the company's business model to  accommodate local circumstances.</em>

Explanation:

<em>Staying away from those emerging markets where it is impractical to modify the the company's business model to accommodate local circumstances</em> is not the best because in the long run the institution will be forced to conform with their business model which could change their mission and activities entirely. Therefore it should work on how it can please the market in a way so it can feed it at least.

#learnwithbrainly

4 0
3 years ago
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