Model: Transport costing computation of cost per passenger-km

The following data relate to a passenger transport company Raj Travels for June. You are required to calculate the cost per passenger-km.

Manager’s salary

25,000

Driver’s wages

9,000

Cleaner’s wages

3,000

Garage mechanic’s salary

5,000

Garage rent

3,000

Insurance premium

2,600

Road tax and permit fee

1,400

Depreciation

6,000

Diesel

7,000

Lubricating oil and sundries

1,000

Spares

750

Tyres and tubes

4,250

The company runs two buses and each of them can accommodate 50 passengers. The buses run between two towns, and the distance between them is 200 km. The number of days on which the buses had run during the month is 30 and each bus made one round trip daily. On an average, the sealing capacity utilized was 75 per cent.