Using the following information, determine the ownership and operating costs for a scraper.

Actual cost (delivered)$162,000 including tires

Horsepower rating200 hp

Cost of tires$6,000

Salvage value$32,400

Useful life6 years at 1,400 hours per year

Total Depreciation and interest cost- $28,199 per year

Insurance$3,240 per year

Taxes$3,645 per year

Storage$2,025 per year

Fuel cost$3.90 per gallon

Fuel consumption rate0.06 gallons per hp per hour

Power utilization85 percent

Use factor40 minutes per hour (66.67 percent)

Lubrication8 quarts of oil at $4.50 per quart

Oiler labor2.2 hours at $27.65

Lubrication scheduleevery 100 hours

Oil filter$8.70

Grease cost -$0.88 hr

Air filter$17.00 changed every 200 hours

Life of tires3,500 hours

Repair to tires12 percent of deprecation

Repairs to equipment cost $22.29/hr