Using straight-line depreciation, Duckburg Knitting & Dyeing calculates the annual cost of a new dyeing range. The price including installation and startup cost was $240,000.00, and it is expected to have a technical and economical life of 4 years. What is the monthly charge to the dyeing department for equipment depreciation for this new machine?

Select one:

a. $5,000.00

b. Cannot be calculated, because depreciation is a non-cash expense.

c. $240,000.00

d. $60,000.00

e. Cannot be allocated, because depreciation is an overhead expense.