PROBLEMS ON OPERATING COSTING

Problem 1A chemical factory runs its boiler on furnace oil obtained from Indian Oil and Bharat Petroleum, whose depots are situated at a distance of 12 km and 8 km from the factory site. Transportation of furnace oil is made by the companys own tanklorries of 5 tonne capacity each.Onwards trips are made only on full load and the lorries return empty. The filling in time takes about average 40 minutes for Indian Oil and 30 minutes for Bharat Petroleum. But the emptying time in the factory is only 40 minutes for all. From the records available , it is seen that the average speed of the companys lorries works out to Rs. 24 km per hour. The varying operating charges average 60 paise per km . covered and fixed charges give an incidence of Rs.7.50 per hour of operation. Calculate the cost per tonne-km from each source.

Problem 2Prakash transport company has been given a bus route 20 km. Long to run a bus. The bus costs the company a sum of Rs.50,000. It has been insured at 3%p.a. and the annual tax will amount to Rs. 1,000. Garage rent is Rs.100 per month. Annual repairs will be Rs.1,000 and the bus is likely to last for 5 years.The drivers salary will be Rs.150 per month and the conductors salary will be Rs. 100 per month. In addition to 10% taking as commission ( to be shared by the driver and the conductor equally).Cost of stationery will be Rs.50 per month. Managers salary is Rs.350 per month.Petrol and oil will be Rs.25 per 100 km. The bus will make 3 round trips carrying on an average 40 passengers on each trip. Assuming 15% profit on takings , calculate the bus fare to be charged from each passenger. The bus will run on an average 25 days in a month.

Problem 3There are two warehouses for storing finished goods in a factory. Warehouse A is at a distance of 10 km. And warehouse B is at a distance of 15 km. from the factory. A fleet of 5 tonne lorries is engaged in transporting the finished goods from the factory. The records show that the lorries average a speed of 30 kms per hourwhen running and regulary take 40 minutes to load at the factory. At warehouse A unloading takes about 30 minutes per load and at warehouse B it takes 20 minutes per load.Drivers wages, depreciation,insurance and taxes amount tp Rs.18 per hour operated. Fuel, oil, tyres and maintainence cost Rs. 2.40 per kilometre. You are required to draw up a statement showing the cost per tonne km. for carrying the finished goods to the warehouse.