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Service costing question

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Service costing question

  • This topic has 5 replies, 2 voices, and was last updated 10 months ago by mrjonbain.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • February 20, 2016 at 7:25 pm #301316
    cloudz
    Member
    • Topics: 2
    • Replies: 2
    • ☆

    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 $4.500

    Can someone please explain to me how to solve it?

    August 23, 2016 at 7:04 pm #334782
    lt2582066
    Member
    • Topics: 2
    • Replies: 3
    • ☆

    Solution 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/kilometer

    Cost 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 #649574
    saman66
    Member
    • Topics: 0
    • Replies: 2
    • ☆

    but 3060/316000= 0.009 in my calculator.

    March 2, 2022 at 10:39 am #649634
    mrjonbain
    Moderator
    • Topics: 1
    • Replies: 1558
    • ☆☆☆☆☆

    saman66, it rounds up to 0.01. Hope this helps.

    April 6, 2022 at 3:38 pm #652798
    saman66
    Member
    • Topics: 0
    • Replies: 2
    • ☆

    thanks

    April 7, 2022 at 2:58 pm #652838
    mrjonbain
    Moderator
    • Topics: 1
    • Replies: 1558
    • ☆☆☆☆☆

    You are welcome.

  • Author
    Posts
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