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10) Service Costing

The document contains 4 problems related to calculating costs for transportation services. It provides details on costs like vehicle purchase price, fuel, maintenance, driver salaries, insurance, taxes for buses, taxis and trucks. It asks to calculate effective cost per km and expected profits under given hire rates.

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25 views

10) Service Costing

The document contains 4 problems related to calculating costs for transportation services. It provides details on costs like vehicle purchase price, fuel, maintenance, driver salaries, insurance, taxes for buses, taxis and trucks. It asks to calculate effective cost per km and expected profits under given hire rates.

Uploaded by

tanzim094
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Cost Accounting

Chapter 10: Service Costing


Problem 1

B Company has started transport business with a feet of 10 taxies. The various expenses incurred by the
company

are given below: Cost of each taxi Tk. 75,000

Salary of ofce staf 1,500 p.m.

Salary of garage staf ,000 p.m.

Rent of garage 1,000 p.m.

Driver's salary (per taxi) 400 p.m.

Road tax and repairs (per taxi) ,160 p.a Insurance per year @ 4o of cost.

The life of a taxi is 3,00,000 km. and the end of which it is estmated to be sold at Tk. 15,000. A taxi runs
on an average 4,000 km. per month of which 0% it runs empty. Petrol consumpton is one litre per 9
km. Cost of petrol is Tk. 6.30 per litre. Oil and other expenses Tk. 10 per 100 km.

Calculate the efectve cost of running a taxi per kilometer. If the hire charge rate is Tk. 1.80 per
kilometer, fnd out the proft the company may expect to make in the frst year of operaton.

Problem 2

A person owns a bus which runs between Chitagong and Dhaka for 15 days in a month. The distance
from Chitagong to Dhaka is 300 Kilometers. The bus completes the trip from Chitagong to Dhaka and
back the same day. The bus goes another 10 days in a month towards Cox's Bazar. The distance from
Chitagong to Cox's Bazar is 150 kilometers. The trip to Cox's Bazar and back is also completed the same
day. Calculate the fare that each passenger should pay if the owner wants to earn a proft of 5% on
takings. The other partculars are given below:

Cost of the bus Tk. 15,OO,OOO per annum.


Depreciaton Interest on capital 0% per annum.
Interest on capital 10% per annum.

Salary of the driver Tk. 3,500 per month.


Salary of the conductor Tk. 1,500 per month.
Ofce expenses Tk. 3,000 per month.
Salary of the part-tme Tk. ,500 per month.
Insurance Tk. 16,000 per annum.

1
Diesel consumpton: 8 kilometers per litre costng Tk. 10 per litre,
Lubricant Tk. 70 per 100 kilometers.
Tcxes and fees Tk. 6,000 per annum.
Repairs and maintenance Tk. 7,500 per annum.
Registraton and rood licence Tk. 5,000 per annum.
Normal capacity of the bus 54
The bus is enerall occu ied 90%

Problem 3

A transport company owns a feet of 0 trucks each costng Tk. 6,00,000. The company has employed
one manager to whom it pays Tk. 9,000 per month and an accountant who gets Tk. 5,000 per month.
The Company has got its truck insured @ % per annum on cost of the truck. The annual total tax is Tk.
1 ,000 per truck. The other expenses are as follows:

Driver's salary Tk. ,000 per month per truck.

Cleaner's salary Tk. 800 per month per truck.

Mechanic’s salary Tk. 6,000 per month.

Peon salary Tk. ,000 per month.

Repairs and maintenance is Tk. 1 ,000 per year per truck.

Diesel consumpton:3 Km. per liter at Tk. 9 per liter.

The estmated life of the truck is 5 years each.

Other informaton:

Distance travelled by each truck per day 00 Km. Normal loading capacity 10 tons. Percentage of truck
laid up for repairs 5%, wastage in loading capacity 10%. Efectve days in a month 5.

Calculate:

(i) Cost per ton Km;

(ii) Cost per running Km. a truck;

(iii) If the hire charge per ton Km. is Tk. I.50, fnd out the proft in year of operaton.
Problem 4

from the following data relatng two diferent vehicles Marut and Suzki. Computer the cost per
kilometer.

Marut Suzki
Kilometers run (annual) 15,000 6000
Cost of vehicle Tk. 5,000 Tk. 15,000
Road license (annual) Tk. 750 Tk. 750
nsurance (annual) Tk. 700 Tk. 700
Garage rent (annual) Tk. 600 Tk. 500
Supervision and salaries Tk. 1 00 Tk. 1 00
Drivers wages per hour Tk. 3 Tk. 3
Cost of petrol per liter Tk. 54 Tk. 54
Miles run per gallon 0 miles 15 miles
Repairs and Maintenance per km. Tk.1.65 Tk. .00
Tyre allocaton per km. Tk. 0.80 0.6
Estmated life of vehicles 1,00,000 miles 75,000 miles
Kilometers run per liter 0 Km. 15 Km.
Charge interest @75 per annum. The vehicles run 20 km per hour on an average.

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