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

Multiple Choice

Vickers Company uses the units-of-activity method in computing depreciation.A new plant asset is purchased for $36,000 that will produce an estimated 110,000 units over its useful life.Estimated salvage value at the end of its useful life is $3,000.What is the depreciation cost per unit?

A) $3.00.
B) $3.27.
C) $0.30.
D) $0.33.