Question

The Flintstone Construction Company delivers dirt and stone from local quarries to its construction sites. A new truck that was purchased for a cost of $125,000 at the beginning of the year was expected to deliver 208,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction Construction Sites: A B C D Tons Delivered: 2,800 4,300 4,800 2,300 How much truck depreciation should be allocated to Site A

Answer 1

Answer:

depreciation to be allocated to A = 2800tons x $0.600 /ton

        = $1680

Step-by-step explanation:

• First calculate the amount of depreciation/ton

• depreciation per ton = $125,000/208,000 = $0.600 /ton

• Hence depreciation to be allocated to A = 2800tons x $0.600 /ton

        = $1680