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zmey [24]
3 years ago
9

A company purchases a machine for $12,000. The estimated residual value is $4,000. The machine has a useful life of 5 years, and

is expected to produce 20,000 units during its lifetime. Use the activity-based depreciation method to calculate the amount of depreciation in Year 1, assuming that the machine was used to produce 6,000 units.
Business
1 answer:
tatuchka [14]3 years ago
8 0

Answer:

$2,400

Explanation:

The computation of the depreciation expense under the activity-based depreciation method is shown below:

= (Original cost - residual value) ÷ (estimated production units)

= ($12,000 - $4,000) ÷ (20,000 units)

= ($8,000) ÷ (20,000 units)

= $0.4 per unit

Now for the first year, it would be

= Production units in first year × depreciation per unit

= 6,000 units × $0.4

= $2,400

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Explanation:

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An early warning signal for the potential of an overdrawn budget is created when: contingency funds are applied for. a bottom-up
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Why do you think people have taken the risk and invested in overseas companies? What are the pros and cons of doing this?
dem82 [27]

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4 0
3 years ago
A manufacturer sells his product at $23 per unit, selling all he produces. His fixed cost is $18,000 and his variable cost per u
svp [43]

Answer:

4000 Units

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5 0
2 years ago
Reynolds Manufacturers Inc. has estimated total factory overhead costs of $96,000 and expected direct labor hours of 12,000 for
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Answer:

the work in process should be debited for $13,520 and factory overhead should be credited for $96,000

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The computation is shown below;

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= $13,520

So here the work in process should be debited for $13,520 and factory overhead should be credited for $96,000

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