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 255,000.00 4% of capital ost per year RM 3000 5% of capital 6% of capital RM 7500.00 RM 300/day RM 1.80/litre RM 25/litre 15 litres/hour 2 litres/day 15m3/hour ost per year ost per year 7% 200 hour per month 7 years
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 255,000.00 4% of capital ost per year RM 3000 5% of capital 6% of capital RM 7500.00 RM 300/day RM 1.80/litre RM 25/litre 15 litres/hour 2 litres/day 15m3/hour ost per year ost per year 7% 200 hour per month 7 years
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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