Question

The Flintstone Construction Company delivers dirt and stone from local quarries to its construction sites. A new truck that was purchased for a cost of $125,000 at the beginning of the year was expected to deliver 208,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction Construction Sites: A B C D Tons Delivered: 2,800 4,300 4,800 2,300 How much truck depreciation should be allocated to Site A

Answer 1

To calculate the truck depreciation allocated to Site A, we need to determine the percentage of total tons delivered to Site A and multiply it by the cost of the truck. The truck depreciation allocated to Site A is $24,650.

Step-by-step explanation:

To calculate the truck depreciation that should be allocated to Site A, we need to determine the percentage of total tons delivered by the truck to Site A. Then, we will multiply this percentage by the cost of the truck.

Percentage of tons delivered to Site A = (Tons Delivered to Site A / Total Tons Delivered) x 100% = (2,800 / 14,200) x 100% = 19.72%

Truck Depreciation allocated to Site A = Percentage of tons delivered to Site A x Cost of truck = 19.72% x $125,000 = $24,650

Answer 2

depreciation to be allocated to A = 2800tons x $0.600 /ton

= $1680

Step-by-step explanation:

• First calculate the amount of depreciation/ton

• depreciation per ton = $125,000/208,000 = $0.600 /ton

• Hence depreciation to be allocated to A = 2800tons x $0.600 /ton

= $1680