Scribd Logo
Upload

Welcome to Scribd!

  • 36 views

    Service Costing - 231125 - 160217

    Uploaded by

    Huzaifa Waseem
    The document contains two questions regarding costing for bus transportation services. Question 1 provides expenses for a bus service operating 10 buses between two locations 25km apart, and asks to calculate the cost per passenger-km and cost per round trip based on the provided utilization rates. Question 2 gives additional details for a single bus route, including costs for the bus, insurance, taxes, rent, repairs, driver/conductor salaries, fuel, and profit margin. It asks to prepare an operating cost statement for a full year and calculate the fare per passenger-km.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Service Costing - 231125 - 160217

    Uploaded by

    Huzaifa Waseem
    36 views1 page
    The document contains two questions regarding costing for bus transportation services. Question 1 provides expenses for a bus service operating 10 buses between two locations 25km apart, and asks to calculate the cost per passenger-km and cost per round trip based on the provided utilization rates. Question 2 gives additional details for a single bus route, including costs for the bus, insurance, taxes, rent, repairs, driver/conductor salaries, fuel, and profit margin. It asks to prepare an operating cost statement for a full year and calculate the fare per passenger-km.

    Original Title

    Service costing_231125_160217

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document contains two questions regarding costing for bus transportation services. Question 1 provides expenses for a bus service operating 10 buses between two locations 25km apart, and asks to calculate the cost per passenger-km and cost per round trip based on the provided utilization rates. Question 2 gives additional details for a single bus route, including costs for the bus, insurance, taxes, rent, repairs, driver/conductor salaries, fuel, and profit margin. It asks to prepare an operating cost statement for a full year and calculate the fare per passenger-km.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    36 views1 page

    Service Costing - 231125 - 160217

    Uploaded by

    Huzaifa Waseem
    The document contains two questions regarding costing for bus transportation services. Question 1 provides expenses for a bus service operating 10 buses between two locations 25km apart, and asks to calculate the cost per passenger-km and cost per round trip based on the provided utilization rates. Question 2 gives additional details for a single bus route, including costs for the bus, insurance, taxes, rent, repairs, driver/conductor salaries, fuel, and profit margin. It asks to prepare an operating cost statement for a full year and calculate the fare per passenger-km.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    TABANI’S SCHOOL OF ACCOUNTANCY

    COST AND MANAGEMENT ACCOUNTING

    SERVICE COSTING

    Q.1. Fast Roadways runs 10 buses between suburban centres which are 25 kilometres apart.
    Seating capacity of each bus is 30 passengers. The expenses for the month of November,
    were as under:

    Salaries of drivers and conductors Rs.60,000


    Salaries of mechanical staff 6,000
    Diesel oil and lubricants 40,000
    Taxes, insurance, etc 5,200
    Repairs and maintenance 8,000
    Depreciation 32,000

    Seating capacity ut8ilized was 60%

    All the buses ran 25 days of the month.

    Each bus made four round-trips daily.

    (a) Find out the cost per passengers kilometer and the cost per round trip per passenger.
    (b) What would have been the cost per round trip per passengers, if the seating capacity
    utilization were to go up to 80%?
    (c) What would have been the cost per round trip per passengers, if all the expenses
    (other than depreciation) were to go up by 20% at a seating capacity utilization of
    80%?

    Q.2. The Union Transport Company has been given a twenty kilometer long route to ply a bus.
    The bus costs the company Rs.100,000. It has been insured at 3% per annum. The annual
    road tax amounts to Rs.2,000. Garage rent is Rs.400 per month. Annual repair is
    estimated to cost Rs.2,360 and the bus is likely to last for five years.

    The salary of the driver and the conductor is Rs.600 and Rs.200 per month respectively in
    addition to 10% of the takings commission to be share equally by them. The manager’s
    salary is Rs.1,400 per month and stationery will cost Rs.100 per month. Petrol and oil
    will cost Rs.50 per 100 kilometres. The bus will make three round trips per day carrying
    on an average 40 passengers in each trip. Assuming 15% profit on takings and that the
    bus will ply on an average 25 days in a month, prepare operating cost statement on a full
    year basis and also calculate the to be charged form each passengers per kilometer.

    From the desk of Sir Majid Masood Page 1 of 1

    You might also like