Compute machine hour rate from the following data:
|
Rs. |
|
|
Cost of the machine |
1,44,000 |
|
Installation charges |
6,000 |
|
Estimated scrap value at the end |
6,000 |
|
Effective working life of the machine |
12,000 hours |
|
Estimated repairs over the effective working life of the machine |
12,000 |
|
Standing charges allocated to the machine per year |
5,760 |
|
Power bill per year |
7,200 |
|
Power consumed by the machine is 20 units per hour at a cost of 25 paise per unit. |