Activity-based-costing:

Calculate the bids the city workers will issue for fixing potholes in the Northwest and Northeast quadrants.

Personnel Cost Pool C Labor (laborers) D Labor (vehicle drivers) E Labor (eqpmt. operators) NORTHWEST Quantity Ratea 2.60 hours/ton $23.25/hour 2.60 hours/ton 20.00/hour 0.35 hours/ton 44.49/hour NORTHEAST Quantity Ratea 2.60 hours/ton $11.18/hour 2.60 hours/ton 23.08/hour 1.15 hours/ton 28.01/hour Materials Cost Pool Hotmix for potholes Tack 1 ton 2.5 gallons/ton $22.00/ton 1.54/gallon 1 ton 2.5 gallons/ton $22.00/ton 1.54/gallon Vehicle Cost Pool Crew Cab Hotbox One Ton Truck Arrowboard 1 hour/ton 1 hour/ton .6 hours/ton 1 hour/ton $8.65/hour 17.65/hour 15.20/hour 2.00/hour 1 hour/ton 1 hour/ton .6 hours/ton 1 hour/ton $8.60/hour 11.26/hour 18.22/hour 2.00/hour Indirect Cost Pool 5.55 hours/ton $17.06/hour 6.35 hours/ton $19.56/hour aLabor rates based on projections from union contract. Material rates based on actual contractor price quotes. Exhibit 5B Pothole Filling Costs: 5 Districts, 1992 Actual (January-March) Activity Northwest Northeast Center Southwest Southeast 23.75 0.40 151.91 4.52 37.72 2.33 36.24 41.52 S298.39 16.18 1.54 105.37 5.90 52.36 3.57 27 28 51.78 $263.98 39.12 0.73 166.18 7.56 12.67 0.50 28.12 15.67 $270.55 20.80 0.60 93.44 3.07 9.96 3.57 27.66 9.32 $168.42 9.14 0.33 59.48 2.20 13.02 1.30 13.90 15.93 $115.30 C Labor (laborers) C Labor Overtime D Labor (truck drivers) D Labor Overtime E Labor (equipment oprs.) E Labor Overtime Supervisors Transp. Supervisors Personnel Costs Binder Cold Mix Hot Mix Special Mix Tack Direct Materials Costs Central Admin. Expense Central Operations Central Maintenance Facility Expense Fixed Assets Maintenance Admin Operations Admin Overhead Costs 5.35 12.89 9.54 0.25 4.21 12.54 6.53 0.62 $24.15 1.53 24.04 3.43 0.75 $29.75 2.31 11.49 10.84 0.24 $24.88 0.03 2.03 20.7 6.28 0.00 $29.04 2.23 $30.01 86.31 33.05 29.92 12.59 0.95 15.03 15.72 S193.57 78.03 29.88 27.05 24.46 0.48 13.59 14.22 S187.71 75.07 44.42 26.03 13.65 0.72 13.07 13.68 $186.64 44.21 26.16 14.12 3.97 0.51 7.08 7.41 $103.46 33.11 12.68 11.48 4.46 0.34 5.77 6.03 S73.87 1.53 6.47 10.7 5.14 5.80 2.10 6.58 0.63 14.08 1.26 1.58 2.87 5.19 0.12 6.65 0.04 5.34 0.48 6.66 0.13 1.57 1.99 Cargo Van Crew Cab Crew: Cab Pick Up 86 Grader Hotbox Loader Paver Pick Up Mini Roller Roller VIB: 2 ton SAD SADA Sedan Tack Wagon TAD TADA Trailer Truck 1 Ton Dump Truck: Patch 91 Unused Equipment Rolling Stock Costs TOTAL Cost per ton 0.09 34.68 7.79 11.81 9.35 1.26 20.75 6.07 0.12 16.54 3.39 20.63 12.07 4.05 0.45 4.85 0.71 0.52 0.05 18.81 25.43 22.33 6.08 3.38 8.89 2.49 5.18 1.74 6.90 6.80 3.94 4.02 9.96 3.26 3.55 3.67 7.46 $117.69 $639.66 $93.61 $569.45 $48.66 $535.60 $76.04 $372.80 $49.98 $268.19 Personnel Cost Pool C Labor (laborers) D Labor (vehicle drivers) E Labor (eqpmt. operators) NORTHWEST Quantity Ratea 2.60 hours/ton $23.25/hour 2.60 hours/ton 20.00/hour 0.35 hours/ton 44.49/hour NORTHEAST Quantity Ratea 2.60 hours/ton $11.18/hour 2.60 hours/ton 23.08/hour 1.15 hours/ton 28.01/hour Materials Cost Pool Hotmix for potholes Tack 1 ton 2.5 gallons/ton $22.00/ton 1.54/gallon 1 ton 2.5 gallons/ton $22.00/ton 1.54/gallon Vehicle Cost Pool Crew Cab Hotbox One Ton Truck Arrowboard 1 hour/ton 1 hour/ton .6 hours/ton 1 hour/ton $8.65/hour 17.65/hour 15.20/hour 2.00/hour 1 hour/ton 1 hour/ton .6 hours/ton 1 hour/ton $8.60/hour 11.26/hour 18.22/hour 2.00/hour Indirect Cost Pool 5.55 hours/ton $17.06/hour 6.35 hours/ton $19.56/hour aLabor rates based on projections from union contract. Material rates based on actual contractor price quotes. Exhibit 5B Pothole Filling Costs: 5 Districts, 1992 Actual (January-March) Activity Northwest Northeast Center Southwest Southeast 23.75 0.40 151.91 4.52 37.72 2.33 36.24 41.52 S298.39 16.18 1.54 105.37 5.90 52.36 3.57 27 28 51.78 $263.98 39.12 0.73 166.18 7.56 12.67 0.50 28.12 15.67 $270.55 20.80 0.60 93.44 3.07 9.96 3.57 27.66 9.32 $168.42 9.14 0.33 59.48 2.20 13.02 1.30 13.90 15.93 $115.30 C Labor (laborers) C Labor Overtime D Labor (truck drivers) D Labor Overtime E Labor (equipment oprs.) E Labor Overtime Supervisors Transp. Supervisors Personnel Costs Binder Cold Mix Hot Mix Special Mix Tack Direct Materials Costs Central Admin. Expense Central Operations Central Maintenance Facility Expense Fixed Assets Maintenance Admin Operations Admin Overhead Costs 5.35 12.89 9.54 0.25 4.21 12.54 6.53 0.62 $24.15 1.53 24.04 3.43 0.75 $29.75 2.31 11.49 10.84 0.24 $24.88 0.03 2.03 20.7 6.28 0.00 $29.04 2.23 $30.01 86.31 33.05 29.92 12.59 0.95 15.03 15.72 S193.57 78.03 29.88 27.05 24.46 0.48 13.59 14.22 S187.71 75.07 44.42 26.03 13.65 0.72 13.07 13.68 $186.64 44.21 26.16 14.12 3.97 0.51 7.08 7.41 $103.46 33.11 12.68 11.48 4.46 0.34 5.77 6.03 S73.87 1.53 6.47 10.7 5.14 5.80 2.10 6.58 0.63 14.08 1.26 1.58 2.87 5.19 0.12 6.65 0.04 5.34 0.48 6.66 0.13 1.57 1.99 Cargo Van Crew Cab Crew: Cab Pick Up 86 Grader Hotbox Loader Paver Pick Up Mini Roller Roller VIB: 2 ton SAD SADA Sedan Tack Wagon TAD TADA Trailer Truck 1 Ton Dump Truck: Patch 91 Unused Equipment Rolling Stock Costs TOTAL Cost per ton 0.09 34.68 7.79 11.81 9.35 1.26 20.75 6.07 0.12 16.54 3.39 20.63 12.07 4.05 0.45 4.85 0.71 0.52 0.05 18.81 25.43 22.33 6.08 3.38 8.89 2.49 5.18 1.74 6.90 6.80 3.94 4.02 9.96 3.26 3.55 3.67 7.46 $117.69 $639.66 $93.61 $569.45 $48.66 $535.60 $76.04 $372.80 $49.98 $268.19