QUESTION 3Build up a unit rate per m³ of excavation work by using an excavator.DataCapital CostInterestTransportation costMaintenance costInsuranceScrap valueOperatorDieselLubrication oilConsumption of dieselConsumption of lubrication oilExcavator capacity per hourProfit and overheadExcavator workingEconomic life cycle of an excavator isRM 320,000.004% of capital cost per year2% of capital cost3% of capital cost4% of capital cost per yearRM 5000.00RM 250.00/dayRM 2.18/litreRM 25.00/litre15 litres/hour2 litres/day15m³/hour22%1700 hour per year6 years

Calculation of Unit Rate per m3 of excavation work by using an excavation RM Interest Cost (4% of…

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

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

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 35E: Cost Behavior, Classification Smith Concrete Company owns enough ready-mix trucks to deliver up to...

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QUESTION 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 cost per year RM 3000 5% of capital cost per year 6% of capital cost per year RM 7500.00 RM 300/day RM 1.80/litre RM 25/litre 15 litres/hour 2 litres/day 15m³/hour 7% 200 hour per month 7 years
Calculate the conventional benefit-cost ratio for the alternative: Initial Investment Revenues Costs Salvage Value Useful life MARR Select one: a.1.3130 b.1.2960 c.1.4659 d.1.2114 e.1.3681 400000 190000 60000 100000 6 0.1
For the below ME alternatives, which machine should be selected based on the AW analysis. MARR-10% Machine B 27,724 6,000 Machine A Machine C First cost, $ 15000 10000 Annual cost, S/year Salvage value, $ Life, years 8,293 4,000 4,000 5,000 1,000 Answer the below questions: B- AW for machine B= For the below ME alternatives, which machine should be selected based on the AW analysis. MARR 10%. Machine A 15000 Machine B Machine C 12,409 30000 First cost, $ Annual cost, $/year Salvage value, $ Life, years 17,181 6,000 4,000 4,000 5.000 1,000 Answer the below questions: C- AW for machine C=
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Plactice as to plant assets. - P... 00 Q 9.55: Annual depreciation expense is $24,000 for an asset that is being depreciated using the straight-Iline method, an estimated salvage value of $3,000, and an estimated useful life of 6 years. What is the cost of the asset? $144,000 B $147,000 $162,000 $141,000 Question Objectives SUBMIT Confidence O Mark for Review F12 F11 F10 F8 F5 F6 PA 8. 6. E R K H %24
Use the information in Problem A-1 to solve this problem. Assume the delivery van is expected to have a useful life of 100,000 miles (Year 1, 40,000 miles; Year 2, 30,000 miles; Year 3, 20,000 miles; Year 4, 10,000 miles). Required Prepare a schedule of depreciation using the units-of-production method. Check Figure Year 3 depreciation, 3,200 PROBLEM A-1 A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000.
Question Completion Status: QUESTION 7 Question 7 The Humpty Doo Rare Earths Mining Company started mining operations on 1 July 2019. In the year to the 30th June 2020 three areas were explored, Europium, Gadolinium, and Terbium. The following costs were incurred: Exploration and evaluation costs Property, plant Exploration and evaluation costs. Intangibles assets Total site. costs D and equipment $m $m $m 9 27 Europium Gadolinium Terbium 18 30 9 36 Rare earths were discovered at Europium on 17th January 2020. In April 2020 after a review of the prospects for the Gadolinium site it was decided to abandon operations there. Exploration was still a work in progress at the Terbium site, but no decision had been made about the commercial potential of that site. Development. of the Europium site had continued during the year and at 30th June 2020 $36 million had been incurred. These costs are to be written off on a production basis. This cost relates to the construction of plant and…
Question 36: Match each depreciation function with its best description. SLN SYD DDB Results in the same depreciation expense each period Bases depreciation on the number of years in the asset's useful life Accelerated depreciation method that doesn't consider salvage value in the initial calculations
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Problem 5 - Property Plant and Equipment Requirements: Calculate the (A) Cost Basis, (B) Straight line, and (C) Activity Method for Depreciation Purchase of a Truck Given cost base Price of $ 110,000 Tax and delivery $ 10,000 Salvage Value $ 20,000 Asset Life 5 years Estimated Mileage Traveled per year Yr 1 50,000 Yr 2 40,000 Yr 3 35,000 Yr 4 40,000 Yr 5 45,000 210,000 Miles (A) Cost Basis Calculations: (B) Straight Line Method Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Calculations: (C) Activity Method Yr 1 Yr 2 Yr 3 Yr 4 Yr 5…
Simplifying the ABC System: Equally Accurate Reduced ABC Systems Selected activities and other information are provided for Patterson Company for its most recent year of operations. Expected ConsumptionRatios Activity Driver Quantity Wafer A Wafer B 7. Inserting dies Number of dies 2,200,000 0.7 0.3 8. Purchasing materials Number of purchase orders 1,900 0.2 0.8 1. Developing test programs Engineering hours 11,500 0.25 0.75 3. Testing products Test hours 20,000 0.6 0.4 ABC assignments $155,000 $155,000 Total overhead cost $310,000 Required: 1. Form reduced system cost pools for activities 7 and 8. Do not round interim calculations. Round your final answers to the nearest dollar. Inserting…
Matching Cost Behavior Descriptions to Cost Behavior Graphs Select the graph (A through L) that best matches the numbered (1 through 7) italicized descriptions of various cost behavior. For each graph, the vertical (y) axis represents total dollars of cost, and the horizontal (x) axis represents output units during the period. The graphs may be used more than once. 1. The cost of depreciation. The asset being depreciated is a large piece of production machinery equipment where the straight-line depreciation method is used. letter _________ 2. The cost of operating a forklift. The forklift is used to move work-in-process inventory in groups of 100 units across the factory floor. letter _________ 3. The cost of direct materials. The first 2,000 pounds of direct materials are free because they are donated by the local city government. After that, the direct materials cost consists of a per-unit amount that decreases after a threshold of 2,500 total pounds is reached. letter _________ 4. The cost of inspecting finished goods inventory. Each unit is inspected by a quality expert who is paid the same amount for each unit inspected. letter _________ 5. The cost of product shipping for all output shipped in the period. The shipping cost per unit decreases with each unit shipped up to a certain number of units, at which time the shipping cost per unit remains constant. letter _________ 6. The cost of compliance with Environmental Protection Agency (EPA) regulations. An electric car plant manufactures car batteries. Part of the manufacturing process involves the emission of toxic chemicals into the environment, which is regulated by the EPA in the form of a fee assessed on a per-unit manufactured basis. The per-unit cost of complying with these regulations increases with every fifth battery produced. letter ______ 7. The cost of customer energy consumption. The local electric utility company uses a pricing system designed to encourage customers to conserve energy usage. Therefore, the rate per kilowatt-hour that is charged to customers increases with each hour the customer consumes. letter _______