Purchase cost = Rs. 15 lakhs

Useful life = 10yrs (2000 hrs per year)

Operating factor = 0.65

Engine = 40 H.P (Diesel type)

Salvage value = 10% of purchase cost

Maintenance & Repairs = 85% of depreciation

Investment cost = 12% of average annual investment

Lubricating oil = 20% of fuel cost

Labour cost = Rs. 15000 per month

Assume any other data if missing, as per the rules and state the same while doing all the detailed calculations.

Average annual investment =$\frac {P(n+1)+S(n-1)}{2n}=\frac{1500000(10+1)+1500000(10-1)}{2\times10}=892500/yr$

Investment cost= 12% x 892500 = Rs.107100/yr

Depreciation cost =$\frac{P-S}{n}=\frac{1500000-1500000}{10}=Rs.135000/yr$

Maintenance and repairs cost= 85% x 135000 =Rs. 114750/yr

Owning cost = Investment cost + Depreciation cost + Maintenance & repairs cost

$107100+135000+114750=Rs.356850/yr=\frac{356850\times12}{2000}=Rs.178.425/hr$

Operating fuel consumption per hr =$\frac{0.5\times BHP\times operating factor\times4.5}{8.26}$

Fuel cost = Operating fuel consumption per hr x Rate of fuel = 7.08 x 60 = Rs. 424.94 (Assume rate of fuel Rs. 60/litre)

Lubricating cost = 20% x fuel cost = 20% x 424.94 = Rs. 85

Labour cost = $\frac{15000\times12}{2000}=RS.85$

Assume, Minor repairs cost = 40% x depreciation = 40% x 135000 = Rs.$\frac{54000}{2000}=Rs.27/hr$

Assume, Overheads cost = 3% x owning cost = 3% x 356850 =.$\frac{10705.5}{2000}=Rs.5.35/hr$

Operating cost = fuel cost + lubricating cost + labour cost + minor repairs cost +overheads cost = Rs. 632.29/hr