Mott Company Uses the Units-Of-Activity Method in Computing Depreciation

Multiple Choice

Mott Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $48000 that will produce an estimated 100000 units over its useful life. Estimated salvage value at the end of its useful life is $4000. What is the depreciation cost per unit?

A) $4.40
B) $4.80
C) $.44
D) $.48