The following annual charges are incurred in respect of a machine in a shop where manual labour is almost nil and work is done by means of five machines of exactly same type of specification.
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Rent and rates (proportional to the floor space) for the shop |
Rs 6,000 |
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Depreciation on each machine |
1,000 |
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Repairs and maintenance for the five machines |
1,200 |
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Power consumed (as per meter) at 5 paise per unit for the shop |
Rs 3,000 |
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Electric charges for lights used in the shop |
Rs 600 |
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Attendants: There are two attendants for the five machines and they are each paid Rs 80 per month |
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Supervision: For the five machines in the shop there is one supervisor whose emoluments are Rs 300 per month |
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Sundry supplies for the shop |
Rs 500 |
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Hire purchase installments payable for the machine (including Rs 300 as interest) |
Rs 1,200 |
The machine uses 10 units of power per hour. Calculate the MHR for the machine for the year.