Hourly Depreciation Solution

STEP 0: Pre-Calculation Summary
Formula Used
Hourly Depreciation = 0.9*Book Value/Life Span
Dh = 0.9*Cbv/Ls
This formula uses 3 Variables
Variables Used
Hourly Depreciation - Hourly Depreciation is the depreciation value of new machines chargeable to the work on an hourly basis.
Book Value - Book Value refers to the value of machine which includes cost of equipment, taxes, insurance and carriage charge.
Life Span - (Measured in Hour) - Life Span (in Hours) refers to the usage period or total life of a machine.
STEP 1: Convert Input(s) to Base Unit
Book Value: 4000.01 --> No Conversion Required
Life Span: 180 Hour --> 180 Hour No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
Dh = 0.9*Cbv/Ls --> 0.9*4000.01/180
Evaluating ... ...
Dh = 20.00005
STEP 3: Convert Result to Output's Unit
20.00005 --> No Conversion Required
FINAL ANSWER
20.00005 <-- Hourly Depreciation
(Calculation completed in 00.004 seconds)

Credits

Created by Chandana P Dev
NSS College of Engineering (NSSCE), Palakkad
Chandana P Dev has created this Calculator and 500+ more calculators!
Verified by Mithila Muthamma PA
Coorg Institute of Technology (CIT), Coorg
Mithila Muthamma PA has verified this Calculator and 700+ more calculators!

11 Management of Construction Equipment Calculators

Average Investment if Salvage Value is not 0
Go Average Investment = (Salvage*(Useful Life-1)+Capital Cost*(Useful Life+1))/(2*Useful Life)
Horsepower given Quantity of Oil
Go Engine power = (Quantity of Oil-(Crankcase Capacity/(5*Time between Change of Oil)))*(0.74/(0.0027*Operating Factor))
Quantity of Lubricating Oil
Go Quantity of Oil = (Engine power*Operating Factor*0.0027/0.74)+(Crankcase Capacity/(5*Time between Change of Oil))
Capacity of Crankcase when Quantity of Oil is Determined
Go Crankcase Capacity = 5*Time between Change of Oil*(Quantity of Oil-(Engine power*Operating Factor*0.0027/0.74))
Average Investment when Salvage value is 0
Go Average Investment = ((1+Useful Life)/(2*Useful Life))*Capital Cost
Capital Cost when Salvage Value is 0
Go Capital Cost = (2*Useful Life*Average Investment)/(1+Useful Life)
Depreciation Cost when Straight Line Method is Assumed
Go Depreciation = (Total Cost-Scrap Value)/Useful Life
Book Value for New Machine
Go Book Value = (Hourly Depreciation*Life Span)/0.9
Life Span of Machine
Go Life Span = 0.9*Book Value/Hourly Depreciation
Hourly Depreciation
Go Hourly Depreciation = 0.9*Book Value/Life Span
Hourly Cost Worker
Go Hourly Cost = 12*Monthly Salary/Machine Hours

Hourly Depreciation Formula

Hourly Depreciation = 0.9*Book Value/Life Span
Dh = 0.9*Cbv/Ls

What are the factors affecting the Cost of Owning and Operating the Construction Equipment?

The different major costs contributing to the cost of owning and operating construction equipment are as follows:
1. Depreciation Cost
2. Investment Cost
3. Maintenance and Repair Cost
4. Operation Costs
a. Repair charges
b. Depreciation on tyres and tubes
c. Labour charges
d. Fuel charges
e. Operation and maintenance crew charges
f. Miscellaneous supplies
5. Downtime Cost
6. Obsolescence Cost
7. Replacement Cost

What is Depreciation Cost?

Depreciation is defined as the declining value of a machine due to its age, use and obsolescence. After years of working, the machine will be worn-out and the value becomes scrap value which is 10%less than the book value. This will require a replacement and for that a fund will be built-up, which is termed as depreciation.

How to Calculate Hourly Depreciation?

Hourly Depreciation calculator uses Hourly Depreciation = 0.9*Book Value/Life Span to calculate the Hourly Depreciation, The Hourly Depreciation formula is defined as the depreciation cost in respect of new machines chargeable to the work on an hourly basis. Hourly Depreciation is denoted by Dh symbol.

How to calculate Hourly Depreciation using this online calculator? To use this online calculator for Hourly Depreciation, enter Book Value (Cbv) & Life Span (Ls) and hit the calculate button. Here is how the Hourly Depreciation calculation can be explained with given input values -> 20.00005 = 0.9*4000.01/648000.

FAQ

What is Hourly Depreciation?
The Hourly Depreciation formula is defined as the depreciation cost in respect of new machines chargeable to the work on an hourly basis and is represented as Dh = 0.9*Cbv/Ls or Hourly Depreciation = 0.9*Book Value/Life Span. Book Value refers to the value of machine which includes cost of equipment, taxes, insurance and carriage charge & Life Span (in Hours) refers to the usage period or total life of a machine.
How to calculate Hourly Depreciation?
The Hourly Depreciation formula is defined as the depreciation cost in respect of new machines chargeable to the work on an hourly basis is calculated using Hourly Depreciation = 0.9*Book Value/Life Span. To calculate Hourly Depreciation, you need Book Value (Cbv) & Life Span (Ls). With our tool, you need to enter the respective value for Book Value & Life Span and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
Let Others Know
Facebook
Twitter
Reddit
LinkedIn
Email
WhatsApp
Copied!