Work out the MHR for the following machine for January 1989.
|
Cost of the machine |
Rs 90,000 |
|
Freight and installation |
Rs 10,000 |
|
Working life |
10 years |
|
Working hours |
2,000 per annum |
|
Repair charges |
50% of depreciation |
|
Power |
10 units per hour at 10 paise per unit |
|
Lubricating oil at |
Rs 2 per day of 8 hours |
|
Stores at |
Rs 10 per day of 8 hours |
|
Wages of operator at |
Rs 4 per day |
Hint: Ignore wages of the operator. If it is also included, the MHR will be comprehensive or composite, Machine Hour Rate will be 10 + 0.50 = Rs 10.50.