Ask Question
15 May, 22:00

The Rockmart Construction Company delivers dirt and stone from local quarries to its construction sites. A new truck that was purchased for a cost of $117,000 at the beginning of the year was expected to deliver 200,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction site:

Construction sites A B C D

Tons delivered 2,000 3,500 4,000 1,500

How much truck cost should be allocated to Site D? (round to the nearest dollar)

A) $15,955

B) $878

C) $1,170

D) $2,048

E) None of the above

+3
Answers (1)
  1. 15 May, 22:14
    0
    B-$878

    Explanation:

    The total cost of the truck $ 117,000 is allocated to Construction Site D on the basis of number of tons delivered to that Site.

    The truck can deliver 200,000 tons over his expected useful life.

    so the cost per ton is $117,000/200,000 = $0.585 per ton.

    Number of tons delivered to Site D is 1,500 tons.

    so the cost allocated to Site D is 1,500 tons * $0.585 = $878
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The Rockmart Construction Company delivers dirt and stone from local quarries to its construction sites. A new truck that was purchased for ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers