Vanderet's Computer Business Owns Computer Equipment Which Cost $3,240 and Has

question 189

Multiple Choice

Vanderet's Computer Business owns computer equipment which cost $3,240 and has an expected useful life of three years. No residual value is expected. At the company's yearend, December 31, the equipment's book value is $2,520. In what month was the computer purchased using the straight-line depreciation method?

• A) January
• B) March
• C) May
• D) June
• E) August

---

Definitions:

Variable Cost

Costs that fluctuate with the level of output or production, such as raw materials and direct labor.

Units Sold

The total number of individual items that have been sold over a specified time period.

Manufacturing Costs

Expenses directly related to the production of goods, including materials, labor, and overhead costs.

Manufacturing Overhead

All indirect production costs associated with the manufacturing process, excluding direct materials and direct labor.