Problem Equipment Estimating Use the following information for a scraper. Actual cost (delivered)$162,000 including tires Horsepower rating200 hp Cost of tires$6,000 Salvage value$32,400 Useful life6 years at 1,400 hours per year Total interest7 percent per year Insurance$3,240 per year Taxes$3,645 per year Storage$2,025 per year Fuel cost-$3.90 per gallon Fuel consumption rate0.06 gallons per hp per hour Power utilization85 percent Use factor40 minutes per hour (66.67 percent) Lubrication8 quarts of oil at $4.50 per quart Oiler labor2.2 hours at $27.65 Lubrication scheduleevery 100 hours Oil filter$8.70 Grease1 tube per 8 hour shift at $7.00 Air filter$17.00 changed every 200 hours Life of tires3,500 hours Repair to tires12 percent of deprecation Repairs to equipment120 percent over useful life Problem Equipment Estimating Use the following information for a scraper. Actual cost (delivered)$162,000 including tires Horsepower rating200 hp Cost of tires$6,000 Salvage value$32,400 Useful life6 years at 1,400 hours per year Total interest7 percent per year Insurance$3,240 per year Taxes$3,645 per year Storage$2,025 per year Fuel cost-$3.90 per gallon Fuel consumption rate0.06 gallons per hp per hour Power utilization85 percent Use factor40 minutes per hour (66.67 percent) Lubrication8 quarts of oil at $4.50 per quart Oiler labor2.2 hours at $27.65 Lubrication scheduleevery 100 hours Oil filter$8.70 Grease1 tube per 8 hour shift at $7.00 Air filter$17.00 changed every 200 hours Life of tires3,500 hours Repair to tires12 percent of deprecation Repairs to equipment120 percent over useful life