OPERATING COSTING
TRANSPORT COSTING 1. Tulsian passenger transport company provides you the following information: No. of buses Cost of each bus Estimated life Repairs & maintenace Driver's Salary Conductor's salary Garage rent Insurance Taxes Road licence Interest Km per litre of fuel 5 Rs.3,00,000 5 years Rs.7,285 [Link] bus Rs.800 [Link] bus Rs.600 [Link] bus Rs. 6,000 p.a. 2% p.a. Rs. 6,000 p.a. Rs. 600 [Link] bus 8% p.a. 20 km Rs. 300 per 10 litres 50 passengers Normal % of vehicles laid up for repair no. of round trips per day Distance of route working days in a month Manager's salary Accountant's salary Peon's salary Cleaner's salary Mechanic's salary Cost of tickets Office Rent Office routine expenses Cost of each tyre Tyres to be replaced per bus 5% 4 25 Rs. 1,000 p.m. Rs. 500 p.m. Rs. 250 p.m. 100 p.m. Rs. 300 p.m. Rs. 10 per 1000 passenger km Rs. 250 p.m. Rs. 500 p.m. Rs. 3,000 1 p.m.
Cost of fuel Total Capacity Average capacity which is used 90%
Notes: (i) Commission @ 10 % of the taking is to be paid to conductor. (ii) Profit @ 20% on taking is desired by the owner. Required- Calculate: a. Cost per month b. Cost per day c. Cost per trip d. Cost per km
e. Cost per passenger km
f. Bus fare to be charged from each passenger
HOSPITAL COSTING 2. A public health centre runs an intensive medical care unit. For this purpose, it has hired a building at a rent of Rs. 5,250 p.m. with the understanding that it would bear the repairs and maintenance charges also. The unit consists of 25 beds but 5 more beds can be comfortably accommodated when the occasion demands. The permanent staff attached to the unit is as follows: 2 supervisors, each at a salary of Rs. 2,500 p.m. 4 nurses, each at a salary of Rs. 1,500 p.m. 2 ward boys, each at a salary of Rs. 750 p.m. Though the unit remains open for the patients all the 365 days in a year , it has full capacity of 25 patients per day only for 120 days. For 245 days it has on average 20 beds occupied per day. But there were occasions when the beds are full and extra beds are hired from outside at a charge of Rs. 10 per bed per day. However , this does not come to more than 5 extra beds above the normal capacity on any one day. The total hire charges for the extra beds incurred for the whole year amount to Rs. 5,000. The unit has engaged expert doctors from outside to attend patients. The fees are paid on the basis of the number of patients attended and time spent by them. On an average it works out to Rs. 33,500 p.m. The other expenses for the year are as under: Repairs & maintenance food supplied to patients Janitor & other services Laundry charges 7,200 88,000 25,000 28,000 Medicines supplied Cost of oxygen, X-rays General administration charges 64,000 1,08,000 99,000
Required: 1. If the unit recovered an over-all average amount of Rs. 150 per patient per day, what is the profit made by unit.
2. The unit wants to work on a budget for the next year, but the number of patients requiring intensive medical care is a very uncertain factor. Assuming that the same revenue and expenses will prevail next year also, work out no of patient-days required by the break even. HOTEL COSTING 3. From the following information relating to a hotel, calculate the room rent to be charged to give a profit of 25% on cost excluding interest (a) Salaries of staff: Rs. 1,02,200 p.a. (b) Wages of the room attendant : Rs. 4 per day There is a room attendant for each room. He is paid wages only when the room is occupied. (c) Lighting, Heating and power The normal lighting expenses for each room for the whole month is Rs. 100 when occupied. Power is used only in winter and the charges are Rs. 40 p.m. for a room, when occupied. (d) Repairs to buildings: Rs. 10,000 p.a. (e) License etc : Rs. 4,800 p.a. (f) Sundries: Rs. 6,600 p.a. (g) Interior decoration and furnishing: Rs. 10,000 p.a. (h) Depreciation @ 5% is to be charged @ 20% on investment in buildings costing Rs. 4,00,000 and 10% on equipments. (i) Interest to be charged @ 20% on investment in buildings and equipments amounting to Rs. 5,00,000. (j) There are 100 rooms in hotel 80% of the rooms are generally occupied in summer and 30% in winter. The period of summer winter may be considered to be of 6 month in each case: a month can be assumed of 30 days.
CANTEEN COSTING
From the following data for the month of April 2011, calculate cost per meal for the canteen Run by joint councils of workers and management of Ratex Ltd: 1. Purchases for the month of April Meat 50 kgs @ Rs. 15 per kg Eggs 36 dozens @ Rs. 5 per dozen Vegetables Rs. 300 Bread etc Rs. 400 Rice Rs. 600 2. Wages and Salaries 2 Cooks @ Rs. 400 p.m. each 1 Manager who is paid Rs. 50 p.m. as allowance ( because he is already an employee) 3. Consumable stores Rs. 5,000 p.a. 4. Gas & Electricity Rs. 200 p.m. 5. Overheads allocated to the canteen Rs. 1,200 p.a. 6. Company subsidy Rs. 2,000 p.a. 7. No. of meals served in the month of April: 2000
ELECTRICITY GENERATION COSTING You are requested to prepare a Cost Sheet showing the cost of generation of power per kilo Watt-Hours (kWH). Total Units Generated Operating Labour Plant Supervision Lubricant and Supplies Repairs & Maintenance Administrative overheads Capital Cost 15,00,000 kWH p.a. Rs. 16,500 p.a. 5,250 p.a 10,500 p.a. 21,000p.a. 9,000 p.a. 1,50,000
Coal consumed per kWH is 1.5 lbs and cost of coal delivered to the power station is Rs. 33.06 per metric ton. Depreciation rate chargeable is 4% p.a. and interest on capital is to be taken @7%. Take 1 metric ton = 2205 lbs.