Ask Question
26 May, 15:33

Swifty Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $41000 that will produce an estimated 110000 units over its useful life. Estimated salvage value at the end of its useful life is $3600. What is the depreciation cost per unit?

+2
Answers (1)
  1. 26 May, 15:41
    0
    depreciation rate per unit $0.34

    Explanation:

    To calculate the depreciation cost per unit we divide the amount subject to depreciation by the estimated untis production over its useful life:

    depreciable amount:

    $41,000 - $3,600 = $ 37,400

    depreciation rate:

    $37,400 / 110,000 units = $0.34
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Swifty Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $41000 that will produce an ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers