Skip to content

Ask the Tutor ACCA MA

Job, Batch & Service costing

AAfrina10y ago
Good day Mr. Moffat, Kindly help me with this question. A truck delivered sand to 2 customers in a week. the following details are available. Customer Weight of goods delivered (Kg) Distance covered (Km) X 500 200 Y 180 1200 Total: 680 1400 The truck cost $3060 to operate in the week.Each customer delivery was carried out separately, and the truck made no other deliveries in the week. What is the cost per kilogram/kilometre of sand delivered in the week (to the nearest $ 0.001)? A. $ 0.003 B. $ 0.010 C. $ 2.186 D. $ 4.500 The correct answer is B. But my problem is that every time I do my calculations, I end up getting a completely different answer to for this question. May you please help me out with this problem, along with the correct calculation? Thanks in advance.
John MoffatJohn MoffatTutor10y ago#1
For X there are 500 x 200 = 100,000 kg/km For Y there are 180 x 1200 = 216,000 kg/km So in total 316,000 kg/km So the cost per kg/km = $3,060 / 316,000 = $0.010 (to the nearest $0.001)
Sign into reply to this topic.