Finding productivity rate and equipment rate

kiwi

New member
Joined
Jan 16, 2016
Messages
14
Hello I've included an attachment; its contents are in the table below:

VehicleDozerGraderWater
Truck
RollerTotal
H.P.180
120
80
120
Operating Factor70%
65%
52%
47%
Purchase Price
$300,000
$200,000
$95,000
$90,000
Salvage Value$42,000
$35,000
$12,000
$18,000
Life Expectancy (Years)
6
7
8
5
Hours per Year3,000
2,500
2,500
2,500
Maint. & Repairs (% of Dep.)100%
100%
100%
100%
Tire Cost$0
$6,500
$2,500
Tire Life (Hours)4,000
4,000
Maint. & Repairs (Tires)15%
15%
Equipment Overhead12%
12%
12%
12%
Fuel Consume Rate0.15
0.15
0.23
0.15
Fuel Cost (Diesel)1
1
1
Fuel Cost (Gasoline)1.25

I'm asked to find.

1) Productivity Rate (M3/Hour)

2) Equipment Rate Per M3

I don't know where to start. I'm not given the output or hours how would I go about solving question 1 and 2?

Thank you.
 

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VehicleDozerGraderWater
Truck
RollerTotal
H.P.18012080120
Operating Factor70%65%52%47%
Purchase Price$300,000$200,000$95,000$90,000
Salvage Value$42,000$35,000$12,000$18,000
Life Expectancy (Years)6785
Hours per Year3,0002,5002,5002,500
Maint. & Repairs (% of Dep.)100%100%100%100%
Tire Cost$0$6,500$2,500
Tire Life (Hours)4,0004,000
Maint. & Repairs (Tires)15%15%
Equipment Overhead12%12%12%12%
Fuel Consume Rate0.150.150.230.15
Fuel Cost (Diesel)111
Fuel Cost (Gasoline)1.25
For what does "H.P." stand? Is this maybe "horsepower"? What is the definition of "Operating Factor"? What sort of depreciation model are you supposed to be using? What are you supposed to be doing with the "Total" column on the far right?

I'm asked to find.

1) Productivity Rate (M3/Hour)

2) Equipment Rate Per M3
For what does "M3" stand? How does your book define "Productivity Rate" and "Equipment Rate" (of what?) "Per M3"?

Please be complete. Thank you! ;)
 
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