Forums › ACCA Forums › ACCA MA Management Accounting Forums › Service costing question
- This topic has 5 replies, 4 voices, and was last updated 2 years ago by mrjonbain.
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- February 20, 2016 at 7:25 pm #301316
A truck delivered sand to two customers in a week. The following details are available.
Customer Weight of goods
delivered (kilograms) :X 500. Y 180.Total = 680.
Distance covered(kilometres):X 200. Y1,200. Total = 1400.The truck cost $3,060 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 $4.500Can someone please explain to me how to solve it?
August 23, 2016 at 7:04 pm #334782Solution to Service costing problem:
X – Distance x Delivery(200 x 180 = 100,000 kilogram/kilometer)
Y- Distance x Delivery( 1200 x 180=216,000vkilogram/kilometer)
total =316,000 kilogram/kilometerCost to operate truck = $3,060.00
To find the cost per kilgram/kilometer of sand, you divide cost by level of activity.therefore $3060.00/316,000 =$0 .010
this is how I perceive it.March 1, 2022 at 4:26 pm #649574but 3060/316000= 0.009 in my calculator.
March 2, 2022 at 10:39 am #649634saman66, it rounds up to 0.01. Hope this helps.
April 6, 2022 at 3:38 pm #652798thanks
April 7, 2022 at 2:58 pm #652838You are welcome.
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