The Flintstone Construction Company delivers dirt and stone from local quarries to its construction sites. A new truck that was purchased for a cost of $125,000 at the beginning of the year was expected to deliver 208,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction Construction Sites: A B C D Tons Delivered: 2,800 4,300 4,800 2,300 How much truck depreciation should be allocated to Site A

Question

Janelle Pope

Mathematics

5 June, 14:15

The Flintstone Construction Company delivers dirt and stone from local quarries to its construction sites. A new truck that was purchased for a cost of $125,000 at the beginning of the year was expected to deliver 208,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction Construction Sites: A B C D Tons Delivered: 2,800 4,300 4,800 2,300 How much truck depreciation should be allocated to Site A

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Christine Mccann · Answer 1

depreciation to be allocated to A = 2800tons x $0.600 / ton

= $1680

Step-by-step explanation:

First calculate the amount of depreciation/ton depreciation per ton = $125,000/208,000 = $0.600 / ton Hence depreciation to be allocated to A = 2800tons x $0.600 / ton

= $1680