Q2(c) (i) Based on the following data given, compute the “all- in”(Gross Rate) in RM

(RINGGIT MALAYSIA) of hourly cost for a Kobelco K-200 hydraulic

excavator. Adopt 20% as overhead and profit for both standing and running
charge.

Capital cost (purchase price) RM350,000.00

Residual Value (resale/scrap value) RM100,000.00
Interest on capital 3% compounded yearly
Expected Life 10 years
Hours worked per annum 2700
Maintenance cost 2% of capital cost per annum
Insurance RM2,000.00 per annum
Road Tax RM0.00 per annum
Operator’s wages RM15 per hour
Fuel @ 15 litres/hour @RM2.00/litre
Lubricants allow 10% of fuel costs

(ii) Estimate the cost, in RM (Ringgit Malaysia) per cubic meter (m3) for moving
excavated earth using a 20 Ton lorry/tipper based on the following data:

 Cost of hiring the same unit Kobelco K-200 hydraulic excavator

including
operator wages as computed in Q2(c)(i)
 Cost of hiring one (1) unit lorry including driver: RM30.00/hr
 Capacity of lorry: 6m3
 Total distance to and from source of cut to filling ground: 1.5 km
 Speed of lorry: 7.5 km/hr
 Tipping time 3 minutes
 Output of hydraulic excavator loading the lorry is 1 min/ excavator/m3
 Bulking of cut materials: 120%
 Overhead & Profit: 20%