Question
Calculate the cost per hour of the following crawler-type excavator. Engine: 350 hp diesel Operating factor 70% Purchase price $345,000 (includes freight) Estimated salvage value
Calculate the cost per hour of the following crawler-type excavator.
Engine: 350 hp diesel
Operating factor 70%
Purchase price $345,000 (includes freight)
Estimated salvage value $180,000
Useful life 5 years
Hours used per year 1900
Maintenance and repairs 115% of annual depreciation (straight-line)
Equipment overhead 12% of average annual investment
Diesel fuel price $2.45 per gallon
Oil and lube 8% of fuel cost
Average Annual Investment =
Fuel Consumption =
Annual Cost
Annual depreciation =
(Straight line)
Maintenance and Repairs =
Equipment Overhead =
Total fixed cost =
Hourly Cost
Vehicle Cost =
Fuel =
Oil/ Lube =
Total cost per hour =
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
