On january 1, 2018, tyson manufacturing corporation purchased a machine for $40,000,000. tyson's management expects to use the machine for 33,000 hours over the next six years. the estimated residual value of the machine at the end of the sixth year is $47,000. the machine was used for 4,000 hours in 2018 and 5,500 hours in 2019. what is the depreciation expense for 2018 if the corporation uses the units-of-production method of depreciation? (round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

$4,842,800.00

Explanation:

Units-of-production depreciation method calculates the amount to be deprecation depending on the asset usage for that period.

In this case, the total hours the asset is expected to work.

Cost of machine $ 40,000,000.00

Salvage value : $ 47,000.00

total hours machine should work: 33,000.00

Depreciable amount: = Cost price- salvage value

   =$40,000,000.00-$47,000.00

   =$39,953,000.00

Depreciation per hour= $39,953,000.00/33000

   =1,210.6969

   =1,210.70

Depreciation for 2018     =1210.7x4000

   =$4,842,800.00

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o