Wenner Furnace Corporation purchased machinery for $279,000 on May 1, 2010. This is estimated that it will contain a useful life of 10 years, salvage value of $15,000, production of 240,000 units, and working hours of 25,000. During the year 2011 Wenner Corp. employs the machinery for 2,650 hours and the machinery produces 25,500 units.
From the information given, calculate the depreciation charge for 2011 under each of the given methods.
a) Straight-line.
b) Units-of-output. (Round depreciation cost per unit to 2 decimal places, i.e. 12.25 and final answer to 0 decimal places, i.e. 25,240.)
c) Working hours.
d) Sum-of-the-year's-digits.
e) Declining-balance (use 20 percent as the annual rate).