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....
-
Describe precisely the composition of the DEPENDENT weak entitys primary key. Use proper terminology in your answer.
-
How much would an investor be willing to pay for an investment that guaranteed payments of $4,000 at the end of every six months for the next 15 years if they wished to earn a nominal return of...
-
The beam shown is tapered along its width. If a force \(\mathbf{P}\) is applied to its end, determine the strain energy in the beam and compare this result with that of a beam that has a constant...
-
Douglas Keel, a financial analyst for Orange Industries, wishes to estimate the rate of return for two similar-risk investments, X and Y. Douglass research indicates that the immediate past returns...
-
Sonia is the Junior Accountant at East Ltd and she has recently completed the first draft of the year-end financial reports. The following financial information is extracted from the financial...
-
FREE-CASH-FLOWS-BASED VALUATION. In Problem, we projected financial statements for Wal-Mart Stores, Inc. (Walmart) for Years +1 through +5. The data in Exhibits 13 (see pages 985987) include the...
-
The elastic strip with a cutout is of length L, width b, and thickness t. Derive the expression for the elongation of the strip caused by the axial load P. 7- -0.4 L- P. f0.66
-
Eden Organics gives massages, facials, and organic body treatments. Last summer, another organic spa opened up in town. The supply curve for Eden Organics would shift in which direction? a. To the...
-
Did you encounter any challenges as you tried to reach a consensus about what structures and systems needed to be in place to make remote work successful? Explain.
-
Two particles 1 and 2, each carrying \(71 \mathrm{pC}\) of charge, are released from rest on a nonconducting, low-friction track. Particle 1 accelerates initially at \(7.0 \mathrm{~m} /...
-
Are there any other steps you would have taken as CEO to cultivate a more positive and collaborative culture? Explain.
-
When a truck and a car both moving with same velocities collide head on, the car gets the maximum damage. Justify.
-
if a vehicle is traveling at a speed of 3 5 . 9 m / s , how long in hours will it take to reach 6 9 3 km ? a ) 0 . 0 5 3 6 hr b ) 1 3 4 0 hr c ) 4 . 1 7 hr d ) 5 . 3 6 hr e ) 2 0 . 7 hr
-
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...
-
What is a SIPOC diagram?
-
Explain the role of robotics and smart factories in manufacturing, services, and supply chains.
-
What is CAD/CAE? Provide one nontextbook example.
Study smarter with the SolutionInn App