On January 1, 2015, Zade Manufacturing Company Purchased a Machine

question 132

Essay

On January 1, 2015, Zade Manufacturing Company purchased a machine for $40,000,000. The company expects to use the machine for 24,000 hours over the next 6 years. The estimated sale value of the machine at the end of the sixth year is $40,000. The company used the machine for 3,600 hours in 2015 and 5,000 hours in 2016.
What is the book value of the machine at the end of year 2016 if the company uses double-declining-balance method of depreciation? (Do not round your intermediate calculations.)

Identify and analyze activity and spending variances in performance reports.

Determine how changes in activity levels affect variable costs, fixed costs, and overall budget performance.

Understand the role of cost drivers in budgeting and how they contribute to budget accuracy.

Calculate budgeted costs based on different cost formulas and activity measures.