Question: Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2015, at a cost of $228, 870.

 Yello Bus Lines uses the units-of-activity method in depreciating its buses.

Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2015, at a cost of $228, 870. Over its 6-year useful life, the bus is expected to be driven 149, 500 miles. Salvage value is expected to be $7, 610. (a) Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) (b) Prepare a depreciation schedule assuming actual mileage was: 2015, 38, 300; 2016, 42, 800; 2017, 37, 400; and 2018, 31,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5, 275.)

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