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Total Maintenance Cost of a Truck

A large rear dump truck working in a coal mining operation under good conditions has a current purchase price of $ 2,000,000, including $ 200,000 for the initial cost of six tyres. What is the net capital cost?

If the repair factor is 0.25 x 10-4 and for good conditions the job factor is 0.8, determine the estimated repair cost per operating hour?

If major overhaul costs are estimated at 15% of the net capital cost and this occurs every 20,000 hours determine the major overhaul cost per operating hour?

If maintenance labour costs are $40/ person hour, a single maintenance person is required and the maintenance labour requirement is estimated at 0.8 person hours per operating hour determine the maintenance labour cost?

Determine the total maintenance cost?

Solution Preview

a. Net capital cost = Total cost less the cost of tyres = 2,000,000-200,000 = $1,800,000

b. Estimated repair cost per operating hour = Net capital cost ...

Solution Summary

The solution explains how to calculate the total maintenance cost

$2.19