Procedure: 403.A-Calculating Rates for Revenue Producing Activities (RPA)
Appendix 1 Schedule VII
Equipment Depreciation Rate
|
Total |
|
|
|
Dept. A |
Dept. B |
|||
Autoclave |
$900.00 |
% Base Hours |
$429.30 |
$470.70 |
Controller |
8,000.00 |
% Base Hours |
3,816.00 |
4,184.00 |
Microscope |
1,125.00 |
100% Dept. A |
1,125.00 |
|
Server |
1,700.00 |
20% Dept. A |
340.00 |
1,360.00 |
Total Depreciation |
$11,725.00 |
$5,710.30 |
$6,014.70 |
|
Divided by Base Hours |
4,278 |
4,685 |
||
Depreciation Rate per Billable Hour |
$1.335 |
$1.284 |
||
Rounded |
$1.34 |
$1.28 |
||
Notes to Schedule VII
If equipment depreciation is intended, the costs must be separately scheduled, totaled, and a reasonable basis used for distribution (usually billable hours). All costs incurred in getting the equipment into operation can be included in the total cost of the equipment. The total cost is then depreciated over the estimated useful life of the equipment, or some other suitable basis. In the absence of clear evidence indicating that equipment usage or wear will be significantly greater in the early portions than in the later portions of its useful life, the straight-line method must be used.
Procedure: 403.A-Calculating Rates for Revenue Producing Activities (RPA)