R Ltd. makes ready mixed cement and operates a small fleetvehicles which delivers the product to customers within its delivery area.General data :Maintenance records for the previous five years reveal the following :YearКтs. runMaintenance cost2$11,70,00013,50021,80,00014,0001,65,00013,25041,60,00013,00051,75,00013,750Transport statistics reveals the following :No. of Journeyseach dayAverage Distance toCustomersKms.VehicleAverage tonnageto customersТоппes16.410244203254042630160There are 5 vehicles operating a five day week, for 50 weeks a year.Standard Cost Data include :weekDriver's wages are $ 500Supervisor's wages $ 700 per weekDepreciation on a straight line basis with no residual value.perLifeСost$10,00,0005 yearsLoading Equipment3,00,000 each5 yearsVehiclesDiesel/Oil Cost $2 per km.Repairs Cost $ 0.50 per km.Vehicle licences cost $ 4,000 per annum for each vehicle Insurance Cost $6,000 per annum foreach vehicle. Tyre Cost $30,000 per annum in total.Miscellaneous cost $22,500 per annum in total.You are required to calculate the standard rate per tonne/km. for operating the vehicle.

Standard rate per tonne per km means: Expected cost of carrying a tonne of weight for a distance of…

R Ltd. makes ready mixed cement and operates a small fleet hicles which delivers the product to customers within its delivery area. neral data : Maintenance records for the previous five years reveal the following : Year Ктs. run Maintenance cost $ 1 13,500 14,000 1,70,000 1,80,000 1,65,000 13,250 4 1,60,000 13,000 5 1,75,000 13,750 Transport statistics reveals the following : No. of Journeys each day Average Distance to Customers Vehicle Average tonnage to customers Топпes Kms. 1 6. 4 10 2 4 4 20 3 2 40 4 2 6. 30 5 1 6 60 There are 5 vehicles operating a five day week, for 50 weeks a year. andard Cost Data include : Driver's wages are $ 500 per week Supervisor's wages $ 700 per Depreciation on a straight line basis with no residual value. week Cost Life 10,00,000 5 years Loading Equipment 3,00,000 each 5 years Vehicles Diesel/Oil Cost $2 per km. Repairs Cost $ 0.50 per km. Vehicle licences cost $ 4,000 per annum for each vehicle Insurance Cost $6,000 per annum fc ach vehicle. Tyre Cost $30,000 per annum in total. Miscellaneous cost $22,500 per annum in total. You are required to calculate the standard rate per tonne/km. for operating the vehicle.

R Ltd. makes ready mixed cement and operates a small fleet hicles which delivers the product to customers within its delivery area. neral data : Maintenance records for the previous five years reveal the following : Year Ктs. run Maintenance cost $ 1 13,500 14,000 1,70,000 1,80,000 1,65,000 13,250 4 1,60,000 13,000 5 1,75,000 13,750 Transport statistics reveals the following : No. of Journeys each day Average Distance to Customers Vehicle Average tonnage to customers Топпes Kms. 1 6. 4 10 2 4 4 20 3 2 40 4 2 6. 30 5 1 6 60 There are 5 vehicles operating a five day week, for 50 weeks a year. andard Cost Data include : Driver's wages are $ 500 per week Supervisor's wages $ 700 per Depreciation on a straight line basis with no residual value. week Cost Life 10,00,000 5 years Loading Equipment 3,00,000 each 5 years Vehicles Diesel/Oil Cost $2 per km. Repairs Cost $ 0.50 per km. Vehicle licences cost $ 4,000 per annum for each vehicle Insurance Cost $6,000 per annum fc ach vehicle. Tyre Cost $30,000 per annum in total. Miscellaneous cost $22,500 per annum in total. You are required to calculate the standard rate per tonne/km. for operating the vehicle.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 21E: At the end of 20x5, Bing Pharmaceuticals began to implement an environmental quality management...

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