Answer:
Depreciation per unit= 0.133 (Approx)
Explanation:
Given:
Cost of machine = $48,000
Total unit produced = 330,000 units
Residual value of the machine = $4,000.
Depreciation rate per unit = ?
Computation of depreciation rate per unit:
Depreciation per unit = (Cost of machine - Salvage value) / Total unit produced
Depreciation per unit= ($48,000 - $4,000) / 330,000 units
Depreciation per unit= ($44,000) / 330,000 units
Depreciation per unit= 0.133 (Approx)
