From the following data relating to two vehicles X and Y, you are required to compute the cost per running km:
|
|
Vehicle X |
Vehicle Y |
|
Km run (annual) |
10,000 |
6,000 |
|
Cost of vehicle |
Rs. 1,00,000 |
Rs. 80,000 |
|
Road licence (annual) |
Rs. 1,000 |
Rs. 1,000 |
|
Insurance (annual) |
Rs. 800 |
Rs. 600 |
|
Garage rent (annual) |
Rs. 700 |
Rs. 400 |
|
Supervision salary |
Rs. 2,000 |
Rs. 2,000 |
|
Driver’s wages per hour |
Rs. 6 |
Rs. 6 |
|
Cost of fuel per hour |
6 |
6 |
|
Km run per litre |
20 km |
15 km |
|
Repairs and maintenance per km |
Rs. 2.00 |
Rs. 2.50 |
|
Tyre allocation per km |
Rs. 1.00 |
Rs. 0.80 |
|
Estimated life of vehicles |
1,00,000 km |
80,000 km |
Charge interest@5 per cent p.a. on cost of vehicles. The vehicles run 20 km on an average.
Statement of Cost per Running km
|
Particulars |
Vehicle X Rs. |
Vehicle Y Rs. |
|
Step A: Fixed Costs per annum: |
|
|
|
(i) Road licence |
1,000 |
1,000 |
|
(ii) Garage rent |
700 |
400 |
|
(iii) Insurance |
800 |
600 |
|
(iv) Supervision salary |
2,000 |
2,000 |
|
(v) Interest @ 5% p.a. |
5,000 |
4,000 |
|
(vi) Total fixed costs per annum |
9,500 |
8,000 |
|
(vii) Kilometres run per annum |
10,000 |
6,000 |
|
Fixed cost per km (vi ÷ vii) |
0.95 |
1.33 |
|
Step B: Running cost per km: |
|
|
|
(i) Driver’s wages (Rs. 6 per hour for 20 km Rs. 6 20) |
0.30 |
0.30 |
|
(ii) Fuel cost per km |
0.30 |
0.40 |
|
(iii) Repairs and maintenance |
2.00 |
2.50 |
|
(iv) Tyre allocation |
1.00 |
0.80 |
|
(v) Depreciation (cost ÷ estimated life) |
1.00 |
1.00 |
|
Total running cost per km |
4.60 |
3.00 |
|
Step C: (A + B) Total cost per running km |
5.55 |
4.33 |