Calculate MHR for machine no. 7, which is one of seven machines in operation in a department of a factory.
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(a) Cost of the machine no. 7: Rs 1,000 |
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(b) Estimated scrap value at finish of working life (10 years): Rs 100. |
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(c) Normal running hours per year: 1,800 hours |
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(d) Machine no. 7 occupies one fifth of the floor space of the department; the rent, rates, lighting etc. of which amounted to Rs 350 per annum |
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(e) Charges for electric power supplied to machine no. 7: Rs 200 per annum |
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(f) Charges for oil, waste etc. supplied to machine no. 7: Rs 30 per annum |
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(g) Repair and maintenance machine estimated: Rs 360 per annum. |
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(h) Cost of supervision and other expenses applicable to Machine no. 7 estimated at Rs 150 per annum. Labour cost of operating the machine should be ignored in your calculations. |