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In determining where the machine depreciation stemmed from Yu was a little unclear 1whether it was cause by the number of machine operations or from
In determining where the machine depreciation stemmed from Yu was a little unclear 1whether it was cause by the number of machine operations or from the machine run time. Based on the feedback she determined that the number of machine operations was a better indicator of equipment depreciation. Yu also believed that plant depreciation could reasonany be based on the factory square footage, and tbat the number of inspections performed drove inspection prices, while the number of boxes used drove packaging costs. Plant administration appeared to be the most problematic in deciding how best to allocate these costs. Total Administration Costs $ 2003 300,000.00 2002 $95,000.00 2001 $35,000.00 2000 _ $30,000.00 1999 $90,000.00 Zauner Ornaments Ending InventoryIr Cost $ 90,000 $ 03,000 $ 53,000 $ 50,000 $ T6,000 Historical Five Year Plant Administration Costs and Other Data %of Plant Plant Number of Total Direct Capacity Personnel Customers Labor Costs Used $ 122 1200 520,000 20% $ 122 1250 515,000 25% $ 119 1100 555,000 35% $ 112 300 _ 540,000 90% $ 113 600 500,000 95%
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