7.1. Components of Operating Costs

Try these first

1. 1.

   What is the fuel consumption for a diesel engine per horsepower hour?

   Hint

   Recall the different values for gasoline versus diesel engines.

2. 2.

   What expenses are included in the operator cost?

   Hint

   Consider what employers are responsible for beyond just the salary.

3. 3.

   What is the fuel consumption rate for a gasoline engine per horsepower hour?

   • 0.06 gallons
   • 0.04 gallons
   • 0.15 gallons

   Hint

   Think back to the specific values mentioned for each type of engine.

4. 4.

   Do mobilization costs include transportation charges?

   • True
   • False

   Hint

   Consider what happens when equipment is moved to a new location.

5. 5.

   If a diesel engine operates 8 hours a day at 450 horsepower and consumes 0.04 gallons per horsepower hour, what is the total fuel cost for a week of operation at a price of $60 per gallon?

   Hint

   Remember to calculate the total gallons consumed for the week first before multiplying by the cost.

6. 6.

   An excavator has a high wear item that costs $300 and is expected to be replaced every 150 hours of operation. How much does this high wear item cost per hour?

   Hint

   Think about how many hours of operation lead to the cost of replacing that item.