A cement grinding mill "X" with a capacity of 48.072 tons per hour utilizes forged steel grinding balls costing P12,474 per ton, which have a wear rate of 105 grams per ton cement milled. Another cement mill "Y" of the same capacity uses high chrome steel grinding balls costing P62,000 per ton with a wear rate of 30 grams per ton cement milled. Determine the more economical grinding mill, considering other factors to be the same. What is the total cost for grinding mill "X"? (amount in PhP/hr)

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter13: Emerging Topics In Managerial Accounting
Section: Chapter Questions
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A cement grinding mill "X" with a capacity of 48.072 tons per hour utilizes forged steel grinding balls
costing P12,474 per ton, which have a wear rate of 105 grams per ton cement milled. Another cement
mill "Y" of the same capacity uses high chrome steel grinding balls costing P62,000 per ton with a wear
rate of 30 grams per ton cement milled. Determine the more economical grinding mill, considering other
factors to be the same. What is the total cost for grinding mill "X"? (amount in PhP/hr)
Transcribed Image Text:A cement grinding mill "X" with a capacity of 48.072 tons per hour utilizes forged steel grinding balls costing P12,474 per ton, which have a wear rate of 105 grams per ton cement milled. Another cement mill "Y" of the same capacity uses high chrome steel grinding balls costing P62,000 per ton with a wear rate of 30 grams per ton cement milled. Determine the more economical grinding mill, considering other factors to be the same. What is the total cost for grinding mill "X"? (amount in PhP/hr)
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