Units of production using miles driven as a measure
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
![Required Information
Exercise 11-1 (Algo) Depreciation methods [LO11-2]
[The following information applies to the questions displayed below.]
On January 1, 2024, the Excel Delivery Company purchased a delivery van for $35,700. At the end of its
five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the
company expects to drive the van 109,000 miles.
Required:
Calculate annual depreciation for the five-year life of the van using each of the following methods.
Exercise 11-1 (Algo) Part 3
3. Units of production using miles driven as a measure of output, and the following actual mileage:
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
Answer is complete but not entirely correct.
Year
Miles
Depreciation
2024
23.800
S
7,206
2025
25,800
7,740
2026
16,800
5,040
2027
29,000
8.700
2028
15,600
3,425
Total
S
32,111](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98a95248-6313-4124-8c48-8cf374831d55%2F601a0b76-dcfb-416e-92d6-72261d237969%2F4fgqlon_processed.png&w=3840&q=75)
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- Required information [The following information applies to the questions displayed below.] On January 1, 2024, the Excel Delivery Company purchased a delivery van for $33,750. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 102,500 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. 3. Units of production using miles driven as a measure of output, and the following actual mileage: Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Year Miles Depreciation 2024 22,500 2025 24,500 2026 15,500 2027 22,500 2028 19,500 Total 0Required information [The following information applies to the questions displayed below.] On January 1, 2024, the Excel Delivery Company purchased a delivery van for $33,750. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 102,500 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. Straight line. traight-line per yearRequired information Exercise 11-1 (Algo) Depreciation methods [LO11-2] [The following information applies to the questions displayed below.] On January 1, 2024, the Excel Delivery Company purchased a delivery van for $35,850. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 109,500 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. Exercise 11-1 (Algo) Part 3 3. Units of production using miles driven as a measure of output, and the following actual mileage: Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Depreciation Year Miles 2024 23,900 $ 2025 25,900 2026 16,900 2027 29,500 7,170 7,770 5,070 8,850 2028 15,300 Total $ 28,860
- Required information [The following information applies to the questions displayed below.] On January 1, 2024, the Excel Delivery Company purchased a delivery van for $52,000. At the end of its five-year service life, it is estimated that the van will be worth $1,000. During the five-year period, the company expects to drive the van 135,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. 1. Straight line. Straight-line 2. Double-declining balance. Note: Round your answers to the nearest whole dollar amount. Year 2024 2025 2026 2027 2028 Total Year 2024 Depreciation 2025 2026 2027 2028 Total $ 3. Units of production using miles driven as a measure of output, and the following actual mileage: Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Miles 0 27,000 29,000 30,000 25,000 26,000 per year Depreciation $ 02. Double-declining balance. Note: Round your answers to the nearest whole dollar amount. Year 2024 2025 2026 2027 2028 Total Depreciation $ Required information [The following information applies to the questions displayed below.] On January 1, 2024, the Excel Delivery Company purchased a delivery van for $33,300. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 101,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. Year 2024 2025 2026 2027 2028 Total 3. Units of production using miles driven as a measure of output, and the following actual mileage: Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Miles 22,200 24,200 15,200 21,000 20,400 Depreciation $Required information (The following information applies to the questions displayed below.] On January 1, 2021, the Excel Delivery Company purchased a delivery van for $30,000. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 128,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. 3. Units of production using miles driven as a measure of output, and the following actual mileage: (Do not round intermediate calculations.) Yoar Miles Depreciation 2021 36,000 $ 7,594 2022 10,000 2,109 2023 15,000 3,164 34,000 7,172 7,383 2024 2025 35,000! Total 27,422
- Required information [The following information applies to the questions displayed below.] On January 1, 2024, the Allegheny Corporation purchased equipment for $162,000. The estimated service life of the equipment is 10 years and the estimated residual value is $8,000. The equipment is expected to produce 350,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. 2. Double-declining-balance. Formula Amount for 2024 Amount for 2025 Double-Declining-Balance Method X X X = Depreciation Expense % = % =[The following information applies to the questions displayed below] On January 1, 2024, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 100,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. 1. Straight line. Answer is complete but not entirely correct. Straight-line $ 30,000 per yearRequired information [The following information applies to the questions displayed below.] On October 1, 2024, the Allegheny Corporation purchased equipment for $299,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 540,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. 3. Units of production (units produced in 2024, 27,000; units produced in 2025, 42,000). Note: Round "Depreciation per unit rate" answers to 2 decimal places. Select formula for Units of Production Depreciation: Calculate 2024 depreciation expense Depreciation per unit rate Units produced in 2024 Depreciation in 2024 Calculate 2025 depreciation expense Depreciation per unit rate Units produced in 2025 Depreciation in 2025
- Required information [The following information applies to the questions displayed below] On October 1, 2024, the Allegheny Corporation purchased equipment for $299,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 540,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. 1. Straight-line. Formula Amounts Year 2024 2025 Choose Numerator: Annual Depreciation Straight-Line Depreciation Choose Denominator: Fraction of Year B M Annual Depreciation Annual Depreciation Depreciation expenseRequired information [The following information applies to the questions displayed below.] On October 1, 2024, the Allegheny Corporation purchased equipment for $115,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 220,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. 1. Straight-line. Formula Amounts Year 2024 2025 Choose Numerator: Annual Depreciation Straight-Line Depreciation ++ + X X X Choose Denominator: Fraction of Year = E = Annual Depreciation Annual Depreciation Depreciation expenseRequired information [The following Information applies to the questions displayed below] Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $56,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $8,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $2,000. 2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double declining- balance method instead of the straight-line method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar. Answer is complete but not entirely correct. No Event 1 Depreciation expense Accumulated depreciation computer General Journal Debit Credit 4,680 x 4,680