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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?

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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