Question: Mott Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $48,000 that will produce an estimated 100,000 units over

Mott Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $48,000 that will produce an estimated 100,000 units over its useful life. The estimated salvage value at the end of its useful life is $4,000.
What is the depreciation cost per unit?

a) $4.40

b) $4.80

c) $0.44

d) $0.48

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