Question

Operating Cost (per hour): Tire depreciation = ($4,500/4,000 hours) = $1.13 per equip. work hour Tire repair = 0.12 x $1.13 per work hour = $0.14 per equip. work hour Fuel cost = 150 hp < 0.06 gal per hp her hour X 0.62 X 0.7 x $1.10 per gal Fuel cost = $4.30 per equip. work hour Lubrication cost = 4 qts. of oil < $1.50 per qt. = $6.00 Lubrication labor = 2 work hours X $16.50 per work hour = $33.00 Lubrication cost per hour = ($6.00 + $33.00)/150 hours Lubrication cost per hour = $0.26 per equip. work hour

Answer 1

Particulars	Formula	Cost per Hour
Depreciation	$4500/4000 hours	1.125
Repair	12% of 1.125	0.135
Fuel cost	150hp*0.06 gll*0.62*0.7*$1.1	4.297
Lubrication	4qts*1.25=                5	5
Oiler labour	2 hours*16.5         33
Lubrication / hour	(5+33)/150	0.253
Operating cost per hour		10.81