The Eagle Construction Company delivers gravel and sand to its construction sites. A new truck that was purchased for a cost of $150,000 at the beginning of the year is expected to deliver 150,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction site: Construction Sites Tons Delivered Site A Site B Site C Site D 5,000 tons 8,000 tons 12,000 tons 3,000 tons What truck depreciation should be allocated to Site D?

The Eagle Construction Company delivers gravel and sand to its construction sites. A new truck that was purchased for a cost of $150,000 at the beginning of the year is expected to deliver 150,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction site: Construction Sites Tons Delivered Site A Site B Site C Site D 5,000 tons 8,000 tons 12,000 tons 3,000 tons What truck depreciation should be allocated to Site D?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 22E: The activity of moving materials uses four forklifts, each leased for 18,000 per year. A forklift is...

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The activity of moving materials uses four forklifts, each leased for 18,000 per year. A forklift is capable of making 5,000 moves per year, where a move is defined as a round trip from the plant to the warehouse and back. During the year, a total of 18,000 moves were made. What is the cost of the unused capacity for the moving goods activity? a. 5,400 b. 1,800 c. 7,200 d. 3,600
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