An engineering company gives you the following details about a new machine installed by them. Calculate the MHR for the machine.
|
(1) Cost of the machine |
Rs 24,000,000 |
|
(2) Customs duty, insurance, freight etc. |
Rs 11,00,000 |
|
(3) Installation expenses |
Rs 3,00,000 |
|
(4) Cost of tools for the first 2 years |
Rs 4,00,000 |
|
(5) Cost of machine room |
Rs 3,00,000 |
|
(6) Cost of air conditioning machine room |
Rs 2,00,000 |
|
(7) Rate of interest on loan to finance the purchase |
12% per annum |
|
(8) Salaries of operators |
Rs 2,00,000 per annum |
|
(9) Cost of electricity |
Rs 11 per hour |
|
(10) Consumption of stores |
Rs 5,000 per annum |
|
(11) Other expenses |
Rs 5,000 per annum |
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(12) Rate of depreciation at 10% per annum on fixed assets |
|
|
(13) Total working hours of machine |
200 hours per month |
|
(14) Loading and unloading time |
10% of the machine time |