Extra Sum: Find out cost per kilometre of one vehicle

Annual kms 50,000

Cost of Vehicle 20,00,000
Petrol price per litre 60
Repairs per km 2
Tyre expenses per km 1
Km per litre of petrol 15 km
Life of vehicle 4,00,000 kms

Working Notes:

Depreciation per km 5 cost of vehicle/life of vehicle

Petrol price per km 4 price per litre/km per litre

Transport Service Cost Sheet

Vehicle No. 200 Period…. 2019-2020

Particulars Total (per Per km
A FIXED COST(or standing charges)
1 Licence fee 75000 1.5
2 insurance 125000 2.5
3 driver's wages 140000 2.8
4 conductor's wages - -
5 cleaner's wages - -
6 supervisor's salary 200000 4
7 interest on capital - -
8 garage rent 60000 1.2
9 office and administration overheads - -
TOTAL (A) 600000 12
B VARIABLE (running) COST
1 petrol 200000 4
2 depreciation 250000 5
3 lubricating oil - -
4 repairs and maintenance 100000 2
5 tyre and tubes 50000 1
TOTAL (B) 600000 12
C OPERATING COST (A+B) 1200000 24
COST PER KM OF ONE VEHICLE WILL BE RS.24
SUM 1

TRANSPORT SERVICE COST SHEET annual km 30000

Vehicle 007
Period 2019-20
Total (₹) Per km.(₹)
A.     Fixed Costs (or Standing Charges):
1.  License fees 32000
2.      Insurance 28000
3.      Driver’s wages 15000
4.      Conductor’s wages -
5.      Cleaner’s wages -
6. Supervisor Salary 48000
7.      Interest on Capital / Investment -
8.      Garage Rent 24000
9.      Office and Administration overheads 147000 4.9
Total (A)
B.        Variable (Running) Costs: per litre = 20 km
Petrol or Diesel 45000 1.5 per litre = 30
Depreciation 75000 2.5 500000/200000
Lubricating Oil - -
Repairs and Maintenance 120000 4
Tyres and tubes 90000 3
Total (B) 330000 11
C.        Operating Cost (A+ B) 477000 15.9
annual km 30000

per litre = 20 km
per litre = 30
500000/200000
A
1
2
3
4
5
6
7
8
9

B
1
2
3
4
5

Effective km.:
◦          1. km
◦          2. Trips (3 round trips)
◦          3. No. of days
◦          4. Yearly / Monthly
Total effective km

. Effective passenger km.:

Effective km × No. of passengers = 36,000 × 40
= 14,40,000 Passenger km.
 Transport Service Cost Sheet

Period…. 2019-2020
Particulars Total (per year) Per km
The Union Transport Co
FIXED COST(or standing charges)
to ply a bus. The bus co
Road Tax 3000
insurance 4500
3% per annum. The ann
driver's wages 10800
600 per month. Annual
conductor's wages 3600 likely to last for five yea
cleaner's wages The salary of the driver
Manager Salary 25200 per month respectively
Stationery 1800 stationery will cost ₹ 15
garage rent 7200 kilometres. The bus wil
office and administration overheads average 40 passengers
TOTAL (A) 56100 Assuming 15% profit on
VARIABLE (running) COST days in a month, prepa
petrol 27000 0.75 and also calculate the b
Depreciation 30000 kilometre.
lubricating oil
repairs and maintenance 3600
tyre and tubes
TOTAL (B) 60600
OPERATING COST (A+B) 116700
Add Profit (15%) 17505
Total Taking 134205

per passenger per km 0.09319791666667

Per Trip price 1.86395833333333
Per Round Trip Price 3.727916666667 134280
20
= 6 (3 ×2)
25
= 12 months
= (20 x 6 x 25x 12 )36,000 km

11190

134280
= 36,000 × 40
,40,000 Passenger km.
he Union Transport Company has been given a 20-kilometre-long route
o ply a bus. The bus costs the company ₹ 1,50,000. It has been insured at
% per annum. The annual Road Tax amounts to ₹ 3,000. Garage Rent is ₹
00 per month. Annual repair is estimated to cost ₹ 3,600 and the bus is
kely to last for five years.
he salary of the driver and the conductor is ₹ 900 per month and ₹ 300
er month respectively. The manager’s salary is ₹ 2,100 per month and
ationery will cost ₹ 150 per month. Petrol and oil will cost ₹ 75 per 100
lometres. The bus will make three round trips per day carrying on an
verage 40 passengers in each trip.
ssuming 15% profit on cost and that the bus will run on an average 25
ays in a month, prepare operating cost statement on a full year basis
nd also calculate the bus fare to be charged from each passenger per
lometre.
 Effective km.:
Transport Service Cost Sheet ◦   
◦   
◦   
Particulars Total (per year) Per km ◦   
A FIXED COST(or standing charges)
1 Road Tax 3000
2 insurance 4500
3 driver's wages (900 *12) 10800
4 conductor's wages (300 *12) 3600 . Effective passe
5 Manager Salary (2100 *12) 25200 Effective
6 Stationery (150 *12) 1800
7 garage rent (600 *12) 7200

TOTAL (A) 56100

B VARIABLE (running) COST
1 petrol ( 75 for 100 km) 27000 0.75
2 Depreciation (150000/5) 30000
3 repairs and maintenance 3600

TOTAL (B) 60600

C OPERATING COST (A+B) 116700
Add Profit (15%) 17505
Total Taking 134205

per passenger per km 0.09

Per Trip price 1.86
Per Round Trip Price 3.73

134280
Effective km.:
◦          1. km ###
◦          2. Trips (3 round trips) = 6 (3 ×2)
◦          3. No. of days ###
◦          4. Yearly / Monthly = 12 months
Total effective km = (20 x 6 x 25x 12 )36,000 km
25*2*3*25*12

. Effective passenger km.:

Effective km × No. of passengers = 36,000 × 40
= 14,40,000 Passenger km.
 Calculate bus fare to be charged 0.0135
Transport Service Cost Sheet

Particulars Total (per month) Per km Annual

A FIXED COST(or standing charges)
1 insurance {(45000*3/100)/12} 112.5 1350
2 Annual Tax (450/12) 37.5 450
3 garage rent 50
4 driver's wages 55
5 conductor's wages 50
6 Stationery 25
7 Manager Salary 175

TOTAL (A) 505

B VARIABLE (running) COST
1 Diesel and oil 375
2 Depreciation 700 8400 700
3 repairs and maintenance (480/12) 40 480

TOTAL (B) 1115

C OPERATING COST (A+B) 1620
Add Profit
Total Taking

per passenger per km 0

Per Trip price 0
Per Round Trip Price 0 134280

You have been given a permit to run a bus on a route 20 km long. The bus costs
and the annual tax will be ₹ 450. Garage rent is ₹ 50 p.m. Annual repairs will be
The driver’s salary will be ₹ 55 p.m. and the conductor’s ₹ 50 per month. Station
Diesel and oil be ₹ 12.5 per hundred kilometres. The bus will make 3 round trips
Assuming 20% profit on takings, calculate the bus fare to be charged from 100 p
 Effective km.:
◦          1. km ###
◦          2. Trips (3 round trips) = 6 (3 3000 km/month
◦          3. No. of days ###
◦          4. Yearly / Monthly = 12 months
Total effective km = (20 x 6 x 25x 12 )36,000 km

Bus Cost 45000

Lifespan 5 years
Scrap value 3000

. Effective passenger km.:

Effective km × No. of passengers = 36,000 × 40
= 14,40,000 Passenger km.

Annual DepriciaCost-Scrap 42000 8400

Diesel & oil cosPer 100 km 12.5

per 1 km 0.125
per month 375

120000 0.0135 Per passanger per trip

km long. The bus costs you ₹ 45,000. It has to be insured @ 3% p.a.

Annual repairs will be ₹ 480 and the bus is likely to last for 5 years at the end of which the scrap
₹ 50 per month. Stationery will cost ₹ 25 p.m. The manager-cum-accountant’s salary will be ₹ 17
will make 3 round trips for carrying on the average 40 passengers on each trip.
be charged from 100 passengers. The bus will work on the average 25 days in a month.
 km/month

x 25x 12 )36,000 km

end of which the scrap value is likely to be ₹ 3,000.

ant’s salary will be ₹ 175 p.m.

ys in a month.
 total km Effective Passenge
Journery Kms per day No of Days Kms Passenger No. r kms

Ahmedabad to Baroda 100 200 8 1600 90% 45 72000

Ahmedabad to Mehsana 75 150 10 1500 80% 40 60000

Ahmedabad to Rajkot 200 400 6 2400 100% 50 120000

Total 5500 252000

taking 147657
passenger kms 252000
0.59

ahd to baroda 59
return trip 118

ahd to mehsana 44.25

return trip 88.5

ahd to rajkot 118

return trip 236
 Transport Service Cost Sheet

Particulars Total (per month) Per km

A FIXED COST(or standing charges)
1 Salary of the driver 11200
2 Salary of the conductor 8800
Salary of the part time
3 Accountant 800
4 Insurance of the bus 1600
5 Road Tax 500
6 Permit fee 1260
7
8
9
TOTAL (A) 24160
B VARIABLE (running) COST
1 Diesel 33000
2 Depreciation 40000
3 lubricating oil (.040*5500) 2200
4 repairs and maintenance 4000
5
TOTAL (B) 79200
C OPERATING COST (A+B) 103360
Add Profit 44297
Total Taking 147657

Journery Kms total km peNo of Days

Ahmedabad to Baroda 100 200 8

Ahmedabad to Mehsana 75 150 10

Ahmedabad to Rajkot 200 400 6

Total
Effective K Passenger No. Passenger kms

1600 90% 45 72000

1500 80% 40 60000

2400 100% 50 120000

5500 252000
Particulars Alternative Proposals
I II III
Purchase and maintain its Use of Use of
own fleet of cars Own Car Hire Car
(employe
e)

Reimbursement or Hire Charges - 4.8 3

Depreciation (3,0000-60,000) /5 48000 2.4

Insurance 3600 0.18 0.18 -
Taxes 2400 0.12 0.12

Petrol 1.8 1.8

Repair and Maintenance 0.6 - -
Tyre 0.36 0.36

Total Cost per km 5.46 4.98 5.28

Cost for 20,000 kms 109200 99600 105600

III I II
Ranking
als
 Calculation of Tonne Km
{Outward Journey (50 kms x5 tonne )=250 + Return Journey (50kms x1 tonne) = 50} Total 250 + 50 = 300 tonn

Rate per tonne per trip that the company should charge if a profit of 50% on freight is to be earned.
 50} Total 250 + 50 = 300 tonne km * 25 days = 7500 tonne km

Particulars Total (per Month) Per km

A FIXED COST(or standing charges)
1 Road Tax (3600/12) 300
2 insurance (7200 /12) 600
3 driver's wages 750
4 Cleaner's wages 375
5 Depreciation (13500/12) 1125
6 General Supervision (7200 /12) 600

TOTAL (A) 3750

B VARIABLE (running) COST
1 Diesel and Oil (22.5*2*25) 1125
2 repairs and maintenance 750

s to be earned. TOTAL (B) 1875

C OPERATING COST (A+B) 5625
Cost per tonne km 0.75
Profit 0.75
Freight per tonne km 1.5
Distancce per Trip 8km
No of Trip per day 8
Total Km per day 64
No of Working days per month 25
No of Working months per year 9
Distance cover 14400
Diesel Consumption Rs 2 per Km
Cost of Diesel 28800

Bus Capacity 50
Half Fare 25
Full Fare 25
Full fare students equivalent to Half fare students 50
Total number of half fare students 75
Total number of half fare students in a day 150

let assume X = half fare total students

so Full fare students = 2X
X + 2X = 9600
3X = 9600
X = 3200
2X = 6400

Full fare = X
Half fare = 0.5 X
X + 0.5X = 9600
1.5 X = 9600
X = 6400
 Operating Cost Statement
Particulars Per Month per bus Per bus pa Total for 5 buses

Driver Salary 1800 21600

Cleaner Salary (1400 /5) 280 3360
License Fee Taxes 286.67 3440
Insurance 333.33 4000
Rerpair 1166.67 14000
Depreciation 3333.33 40000
Diesel 2400.00 28800

Total Cost 115200 576000

Cost Per month 9600

No Of students 150

Cost per Student 50 64 3200

50 128 6400
9600
Full 128

diesel 9*25*8*4*4

Students picked up and dropped within a range up to 4 kms of distance from the school are charged half fare and fi
Required:
(i) Prepare a statement showi
(ii) Work out the average cost
(A) Students coming from a di
(B) Students coming from a di
ool are charged half fare and fifty percent of the students travelling in each trip are in this category.

(i) Prepare a statement showing the expenses of operating a single bus and the fleet of five buses for a year.
(ii) Work out the average cost per student per month in respect of –
(A) Students coming from a distance of up to 4 kms form the school and
(B) Students coming from a distance beyond 4 kms from the school.