Booklet 6 Service Costing Solutions.xlsx - 2.95

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Exercise 2.95 Unnamed: 1 Unnamed: 2 Unnamed: 3 SOLUTION
Annual Service Cost Statement
Lorry 1 Lorry 2
£ £
Depreciation 12000 10000
Driver's Wages 22500 20000
Tyres 3750 3000
Maintenance 47000 22250
Diesel and Oil 7800 5000
Repairs 24375 10000
License 2500 2500
Insurance 7000 5900
TOTAL COST 126925 78650
NOTES
Depreciation Lorry 1 (£88000 - £4000) / 7 years
84000 / 7
12000
Lorry 2 (£68000 - £8000) / 6 years
60000 / 6
10000
Wages Lorry 1 £450 x 50 weeks
22500
Lorry 2 £400 x 50 weeks
20000
Maintenance Lorry 1 Miles (400+500+300+200+550) x 50 weeks
97500 miles
Cost £8000 + (£0.40 x 97500 miles)
47000
Lorry 2 Miles (200 miles x 5 days) x 50 weeks
50000 miles
Cost £7250 + (£0.30 x 50000 miles)
22250
Diesel & Oil Lorry 1 (97500 miles / 10 miles) x £0.80
7800
Lorry 2 (50000 miles / 8 miles) x £0.80
5000
Repairs Lorry 1 97500 miles x £0.25
24375
Lorry 2 50000 miles x £0.20
10000
Cost per Tonne/Mile
Lorry 1 Total Cost
Total Number of Tonne/Miles per Year
126925
(16x400 + 24x500 + 30x300 + 20x200 + 35x550) x 50 weeks
126925
2532500
0.050118460019743336
Lorry 2 Total Cost
Total Number of Tonne/Miles per Year
78650
(20x200) x 5 days x 50 weeks
78650
1000000
0.07865
Cost of Transporting 15 tonnes on a 50 mile Journey
Lorry 1 Cost 15 tonnes x 50 miles x £0.05
37.5
Add Mark Up 9.375
Charge 46.875
Lorry 2 Cost 15 tonnes x 50 miles x £0.08
60
Add Mark Up 15
Charge 75