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

• Actual cost (delivered)—$162,000 including tires
• Horsepower rating—200 hp
• Cost of tires—$6,000
• Salvage value—$32,400
• Useful life—6 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 rate—0.06 gallons per hp per hour
• Power utilization—85 percent
• Use factor—40 minutes per hour (66.67 percent)
• Lubrication—8 quarts of oil at $4.50 per quart
• Oiler labor—2.2 hours at $27.65
• Lubrication schedule—every 100 hours
• Oil filter—$8.70
• Grease cost -$0.88 hr.
• Air filter—$17.00 changed every 200 hours
• Life of tires—3,500 hours
• Repair to tires—12 percent of deprecation
• Repairs to equipment cost $22.29/hr.