Vickers Company Uses the Units-Of-Activity Method in Computing Depreciation

question 145

Multiple Choice

Vickers Company uses the units-of-activity method in computing depreciation.A new plant asset is purchased for $36,000 that will produce an estimated 110,000 units over its useful life.Estimated salvage value at the end of its useful life is $3,000.What is the depreciation cost per unit?

• A)$3.00.
• B)$3.27.
• C)$0.30.
• D)$0.33.

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