Subject :- Account Hart Company sells and delivers office furniture across Western Canada.The costs associated with the acquisition and annual operation of a delivery truck are given belowInsuranceLicencesTaxes (vehicle)Garage rent for parking (per truck)Depreciation ($22,500+ years)Gasoline, oil, tires, and repairs$ 2,915$375$ 110$1,100$4,500$8.14/kmRequired:1. Assume that Hart Company owns one truck that has been driven 44.000 kilometres during the first year. Compute theaverage cost per kilometre of owning and operating the truck (Round your answer to 2 decimal places)Avage cost per kilometro2. This part of the question is not part of your Connect assignment. 3. Assume that the company decides to use the truck during the second year Near year-end, an order is received from acustomer over 1,000 kilometres away. What costs from the previous ist are relevant in a decision between using the truck tomake the delivery and having the delivery done commercially? (Round your answer to 2 decimal places.)Relevant cost per kilometre4. Occasionally, the company could use two trucks at the same time. For this reason, some thought is being given to purchasinga second truck. The total kilometres driven would be the same as if only one truck were owned. What costs from the previouslist are relevant to a decision about whether to purchase the second truck?Relevant cost

Relevant cost is a cost that is relevant to a particular decision being made. It is a cost that will…

Hart Company sells and delivers office fumiture across Western Canada. The costs associated with the acquisition and annual operation of a delivery truck are given below Insurance Licences Taxes (vehicle) Garage rent for parking (per truck) Depreciation ($22,500+ years) Gasoline, oil, tires, and repairs $ 2,915 175 $ $ 110 $1,100 $4,500 $ 8.14/im Required: 1. Assume that Hart Company owns one truck that has been driven 44.000 kilometres during the first year. Compute the average cost per kilometre of owning and operating the truck (Round your answer to 2 decimal places) Avage cost per kilometro 2. This part of the question is not part of your Connect assignment.

Hart Company sells and delivers office fumiture across Western Canada. The costs associated with the acquisition and annual operation of a delivery truck are given below Insurance Licences Taxes (vehicle) Garage rent for parking (per truck) Depreciation ($22,500+ years) Gasoline, oil, tires, and repairs $ 2,915 175 $ $ 110 $1,100 $4,500 $ 8.14/im Required: 1. Assume that Hart Company owns one truck that has been driven 44.000 kilometres during the first year. Compute the average cost per kilometre of owning and operating the truck (Round your answer to 2 decimal places) Avage cost per kilometro 2. This part of the question is not part of your Connect assignment.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 7E: Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for...

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