The following were the expenses incurred by a company in operating one lorry (for the conveyance of raw materials) and a bus (for the conveyance of staff) during a month:
|
Monthly Costs |
Lorry |
Bus |
|
Driver’s Salary |
7,000 |
8,000 |
|
Cleaner’s Wages |
2,000 |
2,000 |
|
Diesel |
8,000 |
7,000 |
|
Oil |
700 |
500 |
|
Repairs |
2,300 |
2,500 |
|
Depreciation |
6,000 |
7,000 |
|
General garage overhead |
4,000 |
3,000 |
|
Road tax |
1,000 |
1,000 |
|
Other overhead expenses |
2,000 |
3,000 |
The above-mentioned vehicles carried the following raw materials and passengers during the month.
Lorry – 100 tonnes of raw materials
Bus – 50 passengers daily for 20 days
Respective distance covered during the same period
Lorry 5000 km
Bus 2000 km
You are required to prepare an operating cost for the month.