A machine costing Rs 20,000 is expected to run for 10 years, at the end of which its scrap value is estimated to be Rs 2,000. Its installation charges are Rs 200
|
Repairs for 10 years’ life is estimated to be |
Rs 1,800 |
|
The machine is expected to run for 2,190 hours in a year |
|
|
Its power consumption would be 15 units per hour |
Rs 5 per 100 units. |
The machine occupies ¼th of the area of the department and has 2/10 points for lighting.
The foreman has to spend about one third of his time for this machine.
|
The rent for the department is |
Rs 300 per month |
|
The charges for lighting are |
Rs 80 per month |
|
The foreman is paid a salary of |
Rs 960 per month |
Find out the hourly rate, assuming insurance is at 1% per annum and expenses on oil etc. are Rs 9 per month.