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Part 1 ?of 3 Lasting Life Clubs purchased exercise equipment at a cost of $ 9 5 , 0 0 0 ?each. In addition, Lasting

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Part 1 ?of 3
Lasting Life Clubs purchased exercise equipment at a cost of $95,000 ?each. In addition, Lasting Life paid $1,980 ?for a special platform on which to stabilize the equipment for use. Freight costs of $2,250 ?to ship the equipment were paid by the equipment supplier. Lasting Life will depreciate the equipment by the units-of-production method, based on an expected useful life of 50,000 ?hours of exercise. The estimated residual value of the equipment is $9,500. ?How many hours of usage can Lasting Life expect from the equipment if the budgeted desereciation expense is $10,200 ?for the year? Why would management choose the units-of-production method and not one of the other methods?
The depreciation for each unit (hour) ?of use is $ q,(Round your answer to the nearest cent.)
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