Hart Company sells and delivers office furniture across Western Canada. The costs associated with the acquisition...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Hart Company sells and delivers office furniture across Western Canada. The costs associated with the acquisition and annual operation of a delivery truck are given below: $2,007 $ 195 24 Garage rent for parking (per truck) $ 1,180 $4,900 Insurance Licences Taxes (vehicle). 118 Depreciation ($24,500 5 years) Gasoline, oil, tires, and repairs $ 0.18/km Required: 1. Assume that Hart Company owns one truck that has been driven 30,000 kilometres during the first year. Compute the average cost per kilometre of owning and operating the truck. (Round your answer to 2 decimal places.) Average cost per kilometre 2. Not available in Connect. 3. Assume that the company decides to use the truck during the second year. Near year- end, an order is received from a customer over 1,000 kilometers away. What costs from the previous list are relevant in a decision between using the truck to make the delivery and having the delivery done commercially? (Round your answer to 2 decimal places.) Relevant cost per kilometre 4. Occasionally, the company could use two trucks at the same time. For this reason, some thought is being given to purchasing a second truck. The total kilometers driven would be the same as if only one truck were owned. What costs from the previous list are relevant to a decision about whether to purchase the second truck? Relevant cost Hart Company sells and delivers office furniture across Western Canada. The costs associated with the acquisition and annual operation of a delivery truck are given below: $2,007 $ 195 24 Garage rent for parking (per truck) $ 1,180 $4,900 Insurance Licences Taxes (vehicle). 118 Depreciation ($24,500 5 years) Gasoline, oil, tires, and repairs $ 0.18/km Required: 1. Assume that Hart Company owns one truck that has been driven 30,000 kilometres during the first year. Compute the average cost per kilometre of owning and operating the truck. (Round your answer to 2 decimal places.) Average cost per kilometre 2. Not available in Connect. 3. Assume that the company decides to use the truck during the second year. Near year- end, an order is received from a customer over 1,000 kilometers away. What costs from the previous list are relevant in a decision between using the truck to make the delivery and having the delivery done commercially? (Round your answer to 2 decimal places.) Relevant cost per kilometre 4. Occasionally, the company could use two trucks at the same time. For this reason, some thought is being given to purchasing a second truck. The total kilometers driven would be the same as if only one truck were owned. What costs from the previous list are relevant to a decision about whether to purchase the second truck? Relevant cost
Expert Answer:
Answer rating: 100% (QA)
HART COMPANY 1 Calculation of per KM cost of owning and operating the truck ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
Posted Date:
Students also viewed these accounting questions
-
Hart Company sells and delivers office furniture across Western Canada. The costs associated with the acquisition and annual operation of a delivery truck are given below: Insurance. . . . . . . . ....
-
An assistant manager is reviewing the costs associated with one of the store's better selling products. The data available follows. Demand= 400 units/year Order cost= $25/order Holding cost= $ .50...
-
In a small group, determine the costs associated with offering an online MBA degree in addition to a traditional MBA degree at a university. Which costs are fixed and which are variable? Determine...
-
Within the context of the planning cycle, the planning that takes place at the highest levels of the firm is called: A. detailed planning and control. B. strategic planning. C. operational planning....
-
The following is an excerpt from a conversation between Paula Marlo, the warehouse manager for Musick Foods Wholesale Co., and its accountant, Mike Hayes. Musick Foods operates a large regional...
-
Lynn and Gina purchased a hair salon business by agreeing to pay $2300 at the end of each month over the next three years. Interest on the loan to purchase agreement was 8.04% compounded monthly. (a)...
-
Figure 10-22 depicts the activities performed in the revenue cycle by the Newton Hardware Company. Required 1 Identify the weaknesses in Newton Hardwares revenue cycle. Explain the resulting threat...
-
Your manager has come to you with the following data, showing actual demand for ve periods and forecast results for two different models. He has asked you to tell him which forecast model is best and...
-
Use the following information for the Problems below. (Algo) [The following information applies to the questions displayed below.] Lansing Company's current-year income statement and selected balance...
-
The CitruSun Corporation ships frozen orange juice concentrate from processing plants in Eustis and Clermont to distributors in Miami, Orlando, and Tallahassee. Each plant can produce 20 tons of...
-
Write a python program that uses a for loop to display the Floyd's Triangle. The number of rows in the output must be provided by the user. This must be a positive integer and below 20. The start...
-
Sheridan Corporation reported the following information (in thousands) at December 31, 2024: 2024 2023 Dividends payable $25 $10 Bank loan payable-current portion 240 240 Bank loan...
-
How do ethical considerations influence conflict resolution practices, and how can organizations ensure ethical compliance while resolving disputes?
-
From Forbes online, regarding business leadership, and shifting to a coaching leadership style. References:...
-
what is the output of following statement. int main() } cout < < fixed < < showpoint < < setprecision (3) < < 12.3 < < endl; return 0;
-
Examine the significance of corporate governance in maintaining ethical practices within banking institutions. What mechanisms ensure accountability and transparency at the executive level in banking...
-
1. Based on the following AOA diagram, please answer the following question: (1) Determine the critical path and the expected project duration (2) Determine the following quantities for each...
-
On 1 July 2018, Parent Ltd acquired all the shares of Son Ltd, on a cum-div. basis, for $2,057,000. At this date, the equity of Son Ltd consisted of: $ 1,000,000 Share capital 500 000 shares...
-
The Tilots Corporations segmented absorption costing income statement for the last quarter for its three metropolitan stores is given below: Management is very concerned about the Downtown Stores...
-
What is the difference between theoretical capacity and practical capacity?
-
Kolbec Community College (KCC) has 4,000 full-time students and offers a variety of academic programs in three areas: professional studies, arts, and technology. The professional studies programs...
-
Describe and explain why buyers and sellers participate in markets.
-
The production possibilities curve can be used to illustrate the economic concepts of _________ (resource combinations outside the production possibilities curve are unattainable), _________...
-
Define and explain the law of demand.
Study smarter with the SolutionInn App