Question

Excavator by own machinery Build up rates for excavator oversite to reduce level max depth not exceeding 1 meter by using own excavator ½ m². Details: i. Average working days: 200days ii. Operator: RM 50/day / 8hr Life cycle: 5 years iv. Diesel: RM 1.70/litre V. Lubricator: RM 20/ litre vi. Loan interest: 10% per year vii. Maintenance: 10% of purchase price for the whole life cycle viii. Transportation to site: 5% of purchase price ix. Scrap Value: RM 8000 X. Excavator: RM 150000 xi. Profit & Overhead: 20%

Answer 1

The Build-up rate for excavator over site to reduce level max depth not exceeding 1 meter by using own excavator ½ m² is RM 329.70/day/m².

Given the following data;

Average working days = 200 days Operator = RM 50/day / 8 hr Life cycle = 5 years Diesel = RM 1.70/ liter Lubricator = RM 20/ liter Loan interest = 10% per year Maintenance = 10% of purchase price for the whole life cycle Transportation to site = 5% of purchase price Scrap Value = RM 8000 Excavator = RM 150000 Profit & Over head = 20%The formula for calculating the Build-up rate for excavator

oversite is given by Build-up rate = [(Purchase price + Interest + Maintenance cost + Transportation cost) / (Useful life of excavator in days x daily output in m²)] + (Operating cost per day x Profit and overhead %age)Calculation of the cost of the Excavator Purchase price = RM 150000 Interest for 5 years = 5 * 10% * RM 150000 = RM 75000 Maintenance cost for 5 years = 5 * 10% * RM 150000 = RM 75000 Transportation cost = 5% * RM 150000 = RM 7500

Total cost of the excavator = RM 150000 + RM 75000 + RM 75000 + RM 7500 = RM 307500 Calculation of the operating cost per day Diesel consumption per hour = 5 liters Fuel cost per hour = 5 * RM 1.70 = RM 8.50 Oil consumption per hour = 1 liter Oil cost per hour = RM 20 / 8 hours = RM 2.50

Total cost of fuel and oil per hour = RM 11.00 Operator cost per day = RM 50 x 2 = RM 100 Total operating cost per day = RM 100 + RM 11.00 = RM 111.00 Calculation of the daily output of excavator Oversite area to be reduced = 1 m²Depth of excavation = 0.5 m Volume of earth to be excavated = 1 m² x 0.5 m = 0.5 m³The daily output of excavator = 0.5 m³ / 0.5 m² = 1 day/m²Calculation of the Build-up rate

Build-up rate = [(Purchase price + Interest + Maintenance cost + Transportation cost) / (Useful life of excavator in days x daily output in m²)] + (Operating cost per day x Profit and over head %age)

Useful life of excavator in days = 5 years x 200 days per year = 1000 days Build-up rate = [(RM 307500) / (1000 x 1)] + (RM 111.00 x 20%)= (RM 307500 / 1000) + (RM 22.20)= RM 307.50 + RM 22.20= RM 329.70 The Build-up rate for excavator oversite to reduce level max depth not exceeding 1 meter by using own excavator ½ m² is RM 329.70/day/m².