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Job, Batch & Service costing

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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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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