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In recent years, Windsor Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Machine 1 2 3 Salvage Useful Life Depreciation Acquired Cost Value (in years) Method Jan. 1, 2020 $96,400 $14,000 July 1, 2021 Nov. 1, 2021 8 Straight-line 88,500 11,500 70,000 8,000 5 6 Declining-balance Units-of-activity For the declining-balance method, Windsor Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 31,000. Actual hours of use in the first 3 years were 2021, 500; 2022,4,600; and 2023, 6,600. (a1) For Machine #3, calculate depreciable cost per hour under units-of-activity method. Depreciable cost $ per hour

In recent years, Windsor Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Machine 1 2 3 Salvage Useful Life Depreciation Acquired Cost Value (in years) Method Jan. 1, 2020 $96,400 $14,000 July 1, 2021 Nov. 1, 2021 8 Straight-line 88,500 11,500 70,000 8,000 5 6 Declining-balance Units-of-activity For the declining-balance method, Windsor Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 31,000. Actual hours of use in the first 3 years were 2021, 500; 2022,4,600; and 2023, 6,600. (a1) For Machine #3, calculate depreciable cost per hour under units-of-activity method. Depreciable cost $ per hour

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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In recent years, Windsor Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Machine 1 2 3 Salvage Useful Life Depreciation Acquired Cost Value (in years) Method Jan. 1, 2020 $96,400 $14,000 July 1, 2021 Nov. 1, 2021 8 Straight-line 88,500 11,500 70,000 8,000 5 6 Declining-balance Units-of-activity For the declining-balance method, Windsor Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 31,000. Actual hours of use in the first 3 years were 2021, 500; 2022,4,600; and 2023, 6,600. (a1) For Machine #3, calculate depreciable cost per hour under units-of-activity method. Depreciable cost $ per hour
Transcribed Image Text:In recent years, Windsor Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Machine 1 2 3 Salvage Useful Life Depreciation Acquired Cost Value (in years) Method Jan. 1, 2020 $96,400 $14,000 July 1, 2021 Nov. 1, 2021 8 Straight-line 88,500 11,500 70,000 8,000 5 6 Declining-balance Units-of-activity For the declining-balance method, Windsor Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 31,000. Actual hours of use in the first 3 years were 2021, 500; 2022,4,600; and 2023, 6,600. (a1) For Machine #3, calculate depreciable cost per hour under units-of-activity method. Depreciable cost $ per hour
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