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Job, Batch & Service costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Job, Batch & Service costing

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 20, 2015 at 7:25 pm #284220
    Afrina
    Member
    • Topics: 26
    • Replies: 37
    • ☆☆

    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.

    November 21, 2015 at 8:38 am #284271
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51563
    • ☆☆☆☆☆

    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)

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