Complete the Schedule as It Relates to the Units-Of-Production Method

question 32

Short Answer

Complete the schedule as it relates to the units-of-production method of depreciation (round to the nearest cent): $\begin{array}{c}\begin{array}{lll}\\\underline{\text {Asset}}\\\text {press} \end{array}\begin{array}{lll}\\\underline{\text { Cost }}\\\$824,400\end{array}\begin{array}{lll}\text { Salvage }\\\underline{\text { Value }}\\\$95,000\end{array}\begin{array}{lll}\text { Units of } \\\underline{\text { Useful Life }}\\600,000\text { miles}\end{array}\begin{array}{lll} \text { Depreciation } \\ \underline{\text { per Unit }}\\\\\end{array}\end{array}$

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Definitions:

Variable And Fixed Cost

Expenses that include both variable costs, which fluctuate with production or service levels, and fixed costs, which remain constant regardless of activity.

Mixed Cost

A cost consisting of a fixed component and a variable component, changing in total with the level of activity but remaining constant per unit.

Units-Of-Production Depreciation

A method of depreciation that allocates an asset's cost based on its usage, productivity, or units of production, rather than the passage of time.

Activity Bases

Criteria or units of measure used to allocate costs in activity-based costing, reflecting the extent to which cost drivers are used or consumed.