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Andre45 [30]
3 years ago
11

A machine that cost $225,000 has an estimated residual value of $15,000 and an estimated useful life of 15,000 machine hours. Th

e company uses units-of-production depreciation and ran the machine 3,000 hours in year 1, 4,000 hours in year 2, and 5,000 hours in year 3. Calculate its book value at the end of year 3
Business
1 answer:
algol [13]3 years ago
8 0

Answer:

$57,000

Explanation:

<u><em>Step 1 : Depreciation Rate</em></u>

Depreciation Rate = (Cost - Residual Value) ÷ Estimated Production

therefore,

Depreciation Rate = $14.00 per machine hour

<u><em>Step 2 : Depreciation expenses</em></u>

Depreciation expense = Depreciation Rate x Annual production

therefore

Year 1 = $42,000

Year 2 = $56,000

Year 3 = $70,000

Total    = $168,000

<em><u>Step 3 : Book Value</u></em>

Book Value = Cost - Accumulated Depreciation

                    = $225,000 - $168,000

                    = $57,000

Conclusion :

book value at the end of year 3 is $57,000

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As part of the initial investment, Ray Blake contributes equipment that had originally cost $101,300 and on which accumulated de
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This is a repeat question on Brainly but here you go.

<h2><em>$51,500 </em></h2>

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When a hurricane rips through Florida, the price of oranges rises because the demand curve shifts to the left. supply curve shif
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Supply curve shifts to the left.

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It is know that Florida is the biggest orange producer in America, when a hurricane rips through Florida, there is no change in demand, so the demand curve remains unaltered. As  for the supply curve, the hurricane is likely to destroy orange crops causing a shortage in supply which corresponds to a shift to the left by the supply curve.

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3 years ago
Jefferson Co. uses the following standard to produce a single unit of its product: Variable overhead $6 (2 hrs. per unit @ $3/hr
tankabanditka [31]

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B. 6,000U

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Actual variable production overhead cost of actual production=$150,000

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6 - 10%

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