Calculate machine hour rate of Machine A:

Consumable stores

600 for Machine A

Consumable stores

1,000 for Machine B

Repairs

800 for Machine A

Repairs

1,200 for Machine B

Heat and Light

360

Rent

1,200

Insurance of building

4,800

Insurance of machines

800

Depreciation of machines

700

Room service

60

General charges

90

Additional information:

Machine A

Machine B

Working hours (hours)

10,000

25,000

Area (Sq. metre)

100

500

Book value (Rs.)

12,000

20,000