The Widget Tool and Die Company buys a $220,000 stamping machine that has an estimated residual value of $20,000. The company expects the machine to produce four million units. It makes 500,000 units during the current period.

If the units-of-production method is used, the depreciation rate is:

A) $0.05 per unit

B) $0.44 per unit

C) $0.04 per unit

D) $0.40 per unit

If the units-of-production method is used, the depreciation expense for this period is:

A) $27,500

B) $480,000

C) $25,000

D)$500,000