Dynatech Corporation Acquired a Piece of Machinery on January 3,2010

Multiple Choice

Dynatech Corporation acquired a piece of machinery on January 3,2010.The total cost of the machinery was $172,500.Dynatech estimated that the machinery would be used for 60,000 hours before being sold for an estimated $7,500.Dynatech uses the units-of-production method of depreciation.Assuming the machine was used for 18,750 hours during the year ended December 31,2010,the depreciation expense rate per hour for 2010 was:

A) $9.20
B) $8.92
C) $2.88
D) $2.75