Еxample:Determine the probable cost per hour for owning and operating a truck withrubber tires after renting it for 6 month with an option to buy it later. Makeuse of the following information:Actual truck cost$50000$10000160 hptires costEngineCrankcase capacityHours between oil changesOperating factorUseful life60 liter80 hr50%б уearsOperating hours per yearRental periodRental charges per monthTires useful life20006 months$25005000 hrMaintenance for truck (60% of truck's Depreciation)Maintenance for tires (15% of tires' Depreciation)Investment (12% of Average Value)Cost of fuel per literCost of oil per liter0.25 $/liter1.50 $/liter

The question is based on the concept of Cost Accounting.

Determine the probable cost per hour for owning and operating a truck with rubber tires after renting it for 6 month with an option to buy it later. Make use of the following information: Actual truck cost $50000 $10000 160 hp tires cost Engine Crankcase capacity Hours between oil changes Operating factor 60 liter 80 hr 50% Useful life 6 vears

Determine the probable cost per hour for owning and operating a truck with rubber tires after renting it for 6 month with an option to buy it later. Make use of the following information: Actual truck cost $50000 $10000 160 hp tires cost Engine Crankcase capacity Hours between oil changes Operating factor 60 liter 80 hr 50% Useful life 6 vears

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Еxample:
Determine the probable cost per hour for owning and operating a truck with
rubber tires after renting it for 6 month with an option to buy it later. Make
use of the following information:
Actual truck cost
$50000
$10000
160 hp
tires cost
Engine
Crankcase capacity
Hours between oil changes
Operating factor
Useful life
60 liter
80 hr
50%
б уears
Operating hours per year
Rental period
Rental charges per month
Tires useful life
2000
6 months
$2500
5000 hr
Maintenance for truck (60% of truck's Depreciation)
Maintenance for tires (15% of tires' Depreciation)
Investment (12% of Average Value)
Cost of fuel per liter
Cost of oil per liter
0.25 $/liter
1.50 $/liter

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Answer what total relevant cost is for the keep old?
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