SpeedEx Logistics, established in 2010 and headquartered in Mumbai, India, operates within the transportation and logistics industry as a…

CA Intermediate · Cost and Management Accounting · MTP · September 2024
SpeedEx Logistics, established in 2010 and headquartered in Mumbai, India, operates within the transportation and logistics industry as a third-party logistics (3PL) provider. The company's fleet consists of 10 trucks, 15 vans, and 5 trailer, each serving distinct purposes. The records of Truck R-40 reveal the following information for July 2024. Days Maintained 30 Days Operated 25 Total Hours Operated 300 Total Kilometres Covered 2,500 Total Tonnage Carried (4 tonne-load per trip, return journey empty 2 round trips per day) The following further information is made available: Operating Costs for the month: Petrol - 400, oil - 170, Grease - 90, Wages to driver - 550, Wages to Worker - 350.Maintenance Costs for the month: Repair - 170, Overhaul - 60, Tyres - 150, Garage charges - 100.Fixed Costs for the month based on the estimates for the year: Insurance - 50, Licence, tax etc.80, Interest 40, Other Overheads - 190Capital costs: Cost of acquisition - 54,000; Residual Value at the end of 5 years life - 36,000. You are required to CALCULATE: cost per days maintainedcost per days operatedcost per hours operatedcost per kilometres coveredcost per commercial tonne km

Suggested Answer and Working Notes:

Particulars Amount in ₹ A Operating costs: Petrol 400 Oil 170 Grease 90 Wages to Driver 550 Wages to Worker 350 (A) 1,560 B Maintenance Costs: Repairs 170 Overhead 60 Tyres 150 Garage Charges 100 (B) 480 C Fixed Cost: Insurance 50 License, Tax etc 80 Interest 40 Other Overheads 190 Depreciation (54,000 - 36,000) / (5 x 12) 300 (C) 660 Total Cost (A + B + C) 2,700 Cost per days maintained = 2700/30 days = 90Cost per days operated = 2700/25 days = 108Cost per hours operated = 2700/300 hours = 9Cost per kilometres covered = 2700/2500 kms = 1.08Cost per commercial tonne kms= 2700/5000 tonne kms = 0.54 *Commercial tonne kms = Total distance travelled x Average load = (4 tonnes+ 0 tonnes) / 2 x 2500 kms = 5000 tonne kms

Topics: Service Costing

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