Q: Calculate the hourly owning cost of the crawler tractor shown Its details are below: 1 Initial purchase cost = 106 * 300 dinars. 2. The cost of transportation = 106 * 2 dinars. 3. The annual downtime cost = 106 * 4.5 dinars. 4 The cost of tires = 106 * 4 dinars. 5. The useful life of the machine = 10 years 6. Tire useful life = 1500 hours 7. Number of operating hours = 2500 hours 8. Investment rate = 10%. 9. The cost of repair and maintenance = 20% of the annual depreciation cost. Note: Use the sum of the numbers of the years method to calculate the extinction)

Q: Calculate the hourly owning cost of the crawler tractor shown Its details are below: 1 Initial purchase cost = 106 * 300 dinars. 2. The cost of transportation = 106 * 2 dinars. 3. The annual downtime cost = 106 * 4.5 dinars. 4 The cost of tires = 106 * 4 dinars. 5. The useful life of the machine = 10 years 6. Tire useful life = 1500 hours 7. Number of operating hours = 2500 hours 8. Investment rate = 10%. 9. The cost of repair and maintenance = 20% of the annual depreciation cost. Note: Use the sum of the numbers of the years method to calculate the extinction)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

See similar textbooks

Similar questions

Machine maintenance 150,000 EGP, if you know rate of maintenance = EGP 0.15 (Number of labors hours = 942,200 hours). calculate the variable and fixed cost
Calculate the profitability of the following proposal using Average rate of return (ARR) method Proposal I Automatic machine Cost OMR 320000 Estimated life 6.5 years Estimated sales P.A160000 Cost : Material OMR 60000 Labour OMR 22000 Variable overheads OMR 14000 O a. All the options are wrong Оь. 16.53% О С.3.42% O d. 4.62%
wrt disk company sells its disk for $107 per unit. total fixed cost are $197000 and variable costs are $32 per unit. calculate the number of units to be sold to earn a pretax income of $224500.
A tire bought for P1, 000 is expected to be useful in travelling 100km after which it can be sold as a scrap for P50.00 (a). The pedometer displays a value of 85km, what is the book value of the tire? (b). How much did the owner need to travel for the tire to amount to P80.00? use the service output method: dn=Na/N (Co-Cl) Cn= Co-Dn
Calculate the profitability of the following proposal using Return an investment method Proposal I Automatic machine Cost 420000 Estimated life 6.5 years Estimated sales p.a 175000 Cost : Material 60000 Labor 22000 Variable overheads 14000 O a. 4.62% O b. 16.53% O c. 3.42% O d. All the options are wrong
In the process of finding the optimum order quantity the following costs are obtained per order or per unit annually. Inspection Cost = SR 4 Cost of Interest = SR 4 Insurance Cost = SR 2 Administration Cost = SR 4 Obsolescence = SR 3 Depreciation Cost = SR 2 Breakage Cost = SR 2 Given that the annual Demand is 500,000. Number of order?
A company is going to buy a new machine for manufacturing its products. Three machines are available. Data is as follows: Money is worth 17% before taxes to the company. Which machine should be chosen?Use Present Worth Method
The annual maintenance cost of a machine shop is P69, 994. If the cost of making a forging is P56 per unit and its selling price is P135 per forge unit, find the number of units to be forged to break-even. If the number of units sold is 1000, what is the loss/profit?
Given problem: A company is going to buy a new machine for manufacturing its product. Four different machines are available. Money is worth 17% before taxes to the company. Using the annual cost method, what is the total annual cost of machine C?
Given problem: A company is going to buy a new machine for manufacturing its product. Four different machines are available. Money is worth 17% before taxes to the company. Using the annual cost method, what is the total annual cost of machine B?
A company is going to buy a new machine for manufacturing its products. Three machines are available. Data is as follows: Money is worth 17% before taxes to the company. Which machine should be chosen?Use Future Worth Method
Which of the following would be classified as a fixed cost in the operation of a motor vehicle? A. Oil change every 10,000 kilometres B. Petrol OC. Insurance OD. Tyre replacement