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Eduardwww [97]
3 years ago
11

A truck acquired at a cost of $69,000 has an estimated residual value of $12,000, has an estimated useful life of 300,000 miles,

and was driven 77,000 miles during the year. Determine the following. If required, round your answer for the depreciation rate to 2 decimal places.
(a) The depreciable cost $
(b) The depreciation rate $ per mile
(c) The units-of-activity depreciation for the year $
Business
1 answer:
Anuta_ua [19.1K]3 years ago
6 0

Answer:

A. $57,000

B. Depreciation rate per mile is $0.19

C. Depreciation is $14,630

Explanation:

a. cost of the truck less the residual value.

Cost of the truck        $69,000

Less: Residual value  <u>$12,000</u>

                                   $57,000

b. Depreciation rate per mile is computed by dividing cost of the truck less the residual value over the estimated useful life.

$57,000 / 300,000 miles = $0.19

c. Units-of-activity depreciation for the year is computed by multiplying miles driven for the year by depreciation rate per mile.

77,000 miles x $0.19 = $14,630

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BartSMP [9]

Answer: B. The firm hires 45 workers and earns a $1,200.00 Economic Profit

Explanation:

If the Market Equilibrium rate is $105 then the company should hire 45 workers as shown in the table.

If they did that, revenue would be $7,425

Expenses would be wages and fixed costs:

= Wages + fixed costs

= (45 workers * wage rate) + 1,500

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= $6,225

Economic profit would be:

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6 0
3 years ago
You operate a car detailing business with a fixed amount of machinery​ (capital), but you have recently altered the number of wo
NemiM [27]

Answer:

1.5 cars

Explanation:

Three employees can produce a total of:

= 4 × 3

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Five employees can produce a total of:

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So, the increase in total product of labor as I increase the labor from 3 to 5 employees:

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= 15 - 12

= 3 cars.

So, the marginal product of moving from 3 to 5 workers:

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3 0
3 years ago
For each of the following cash activities, choose the appropriate letter to match the activity with the internal control princip
Helen [10]

Answer:

A. Restrict access

C. Establish responsibility

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Explanation:

A. Restrict access, as the password is set to address the cash register, that is a security is being provided, and this is because, there is a restricted access, for the safety purpose.

C. Establish responsibility - As the treasurer is held liable of making and receiving any checks, and that he is the person who shall monitor such things, related to transactions in checks.

D. Document procedures - since a list is prepared for the checks received in mail, it is mere preparation of records and documentation of what checks are received and what not.

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2 years ago
A production manager is evaluated based on the quantity of direct materials used in production. If the production line actually
Shalnov [3]

Answer:

1) True

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Explanation:

1)  The manager's evaluation should be based on a flexible budget, so the statement is true.

The standard quantity of direct materials used should be based on actual production for a correct variance analysis.

2 ) Total fixed costs remains the same when comparing a flexible budget to a master budget.

Total fixed costs do not change in total within relevant range of production.

3 0
3 years ago
A manufacturer of food products is looking at entering several new markets in developing countries. Before it does this, the com
Lorico [155]

Answer:

Option D

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In simple words, the problem depicted in the given scenario is an example of low knowledge of the target audience. In the given case, the company did everything correct with respect to their procedures, like they made a question are in the local language and distributed to the target audience and collected the survey efficiently.

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3 years ago
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