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Schach [20]
3 years ago
11

A truck costs​ $316,000 and is expected to be driven​ 116,000 miles during its​ five-year life. Residual value is expected to be

zero. If the truck is driven​ 27,000 miles during the first​ year, how much depreciation should the business record under the​ units-of-production method?

Business
2 answers:
mel-nik [20]3 years ago
8 0

Answer:

Annual depreciation= $73,551.72

Explanation:

Giving the following information:

A truck costs​ $316,000 and is expected to be driven​ 116,000 miles during its​ five-year life. The residual value is expected to be zero. The truck is driven​ 27,000 miles during the first​ year.

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= (316,000/116,000)*27,000= $73,551.72

Serga [27]3 years ago
3 0

Answer:

$80,040

Explanation:

Please see attachment

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Hejl Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The co
zepelin [54]

Answer:

Spending variance= $43 favorable

Explanation:

Giving the following information:

Standard:

Fixed costs= $210

Variable cost per job= $86

Variable cost per meal= $15

The actual activity was 28 jobs and 217 meals. The actual cost for catering supplies in March was $5,830.

To calculate the spending variance, we need to use the following formula:

Spending variance= (actual costs - standard costs)

Standard costs= 210 + 28*86 + 15*217= 5,873

Spending variance= 5,830 - 5,873

Spending variance= $43 favorable

8 0
2 years ago
What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance acc
inessss [21]

Explanation:

The adjusting entry is as follows

On December 31

Insurance expense A/c Dr $5,150

               To Prepaid insurance A/c $5,150

(Being the insurance expense is recorded)

It is computed below:

= Balance in prepaid insurance account - unexpired amount

= $9,050 - $3,900

= $5,150

While passing the adjusting entry we debited the insurance expense account and credited the prepaid insurance account

7 0
2 years ago
Casey Electronics has a piece of machinery that costs $300,000 and is expected to have a useful life of 6 years or 40,000 hours.
kozerog [31]

Answer:

None of the given options.

Depreciation expense for year 1 would be $37,500.

Explanation:

Cost = $400,000

Residual value = $50,000  

Expected hours = 40,000

Working hours (year 1) = 6,000 hours  

Now,  

Depreciation per hour = \frac{Cost-Residual Value}{Expected hours}  

Depreciation per hour = \frac{300,000 - 50,000}{40,000}  

Depreciation per hour = \frac{250,000}{40,000}  

Depreciation per hour = $6.25

Depreciation expense (year 1) = Depreciation per hour × Working hours (year 1)

Depreciation expense (year 1) = $6.25 × 6,000

Depreciation expense (year 1) = $37,500

4 0
3 years ago
A sequence of organizations that directs a product from the producer to the ultimate user is called a(n) _____.
Norma-Jean [14]
The answer is that it is called as marketing channel or distribution channel.

A marketing channel refers to the people, organizations, and activities that are essential to switch the possession of products from the factor of production to the factor of intake and it is the way services and a product get to the end-user, the client and is also called as distribution channel.

4 0
3 years ago
Whispering Company sells goods that cost $301,000 to Ricard Company for $402,000 on January 2, 2020. The sales price includes an
Jobisdone [24]

Answer:

The amount of revenue to be recognized at 31st March is $383500

Explanation:

The revenue amount that should be recognized in the income statement as at March 31,2020 is the  sales price of $365000 plus three months of installation fee since installation is expected to last six months and three months have passed since installation began.

Hence, the amount of revenue as at 31st March is calculated thus:

Sales price                                                                     $365000

Installation fee for 3 months(3/6*$37000)                   <u>$18500</u>

Total revenue as at 31st March                                    $ 383,500

The rationale behind this is that revenue is only recognized when the seller has discharged his or her obligation under the contract not when cash is received and it is very clear that installation has been undertaken for 3 out of 6 months

7 0
3 years ago
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