Build up a unit rate per m³ of excavation work by using an excavator. Data Capital Cost Interest Transportation cost Maintenance cost Insurance Scrap value Operator Diesel Lubrication oil Consumption of diesel RM 320,000.00 4% of capital cost per year 2% of capital cost 3% of capital cost 4% of capital cost per year RM 5000.00 RM 250.00/day RM 2.18/litre RM 25.00/litre 15 litres/hour

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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QUESTION 3
Build up a unit rate per m³ of excavation work by using an excavator.
Data
Capital Cost
Interest
Transportation cost
Maintenance cost
Insurance
Scrap value
Operator
Diesel
Lubrication oil
Consumption of diesel
Consumption of lubrication oil
Excavator capacity per hour
Profit and overhead
Excavator working
Economic life cycle of an excavator is
RM 320,000.00
4% of capital cost per year
2% of capital cost
3% of capital cost
4% of capital cost per year
RM 5000.00
RM 250.00/day
RM 2.18/litre
RM 25.00/litre
15 litres/hour
2 litres/day
15m³/hour
22%
1700 hour per year
6 years
Transcribed Image Text:QUESTION 3 Build up a unit rate per m³ of excavation work by using an excavator. Data Capital Cost Interest Transportation cost Maintenance cost Insurance Scrap value Operator Diesel Lubrication oil Consumption of diesel Consumption of lubrication oil Excavator capacity per hour Profit and overhead Excavator working Economic life cycle of an excavator is RM 320,000.00 4% of capital cost per year 2% of capital cost 3% of capital cost 4% of capital cost per year RM 5000.00 RM 250.00/day RM 2.18/litre RM 25.00/litre 15 litres/hour 2 litres/day 15m³/hour 22% 1700 hour per year 6 years
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