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United Parcel Service (UPS) purchases delivery trucks to add to their freight. They use the units-of-activity method to compute depreciation on its delivery trucks. Each
United Parcel Service (UPS) purchases delivery trucks to add to their freight. They use the units-of-activity method to compute depreciation on its delivery trucks. Each delivery truck is expected to be driven 164,000 miles. Delivery truck no. 254 cost $35,000 and is expected to have a salvage value of $550. Delivery truck no. 254 is driven 40,300 miles in year 1 and 36,000 miles in year 2. Calculate depreciation cost per mile using unit-of-activity method (Round to two decimal).
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