Model: Power house costing
An iron and steel works which generates its own power for the purpose of using the same for running the factory gives the following information:
- Coal consumed 500 quintal @ Rs. 24 per quintal
Oil 15 quintal @ Rs. 1,000 per quintal
Water 1,00,000 litres @ Rs. 2 per 1,000 litres - Cost of steam boiler Rs. 60,000, which has a residual value of Rs. 12,000 and a life of 10 years
- Salaries and wages for generating plant:
Three skilled workers @ Rs. 1,000 p.m.
Three unskilled workers @ Rs. 500 p.m - Generating plant cost Rs. 1,50,000; Depreciation as 10 per cent
- Share of administrative charges Rs. 2,050 p.m
- Salaries and wages for the boiler house:
Five men @ Rs. 600 p.m.
Four women @ Rs. 600 p.m - Repairs and maintenance of steam boiler and generating plant Rs. 1,000 p.m.
- No. of units generated 1,50,000
- Sale of ash Rs. 300
- units generated were used by generating department itself
You are required to calculate cost per unit of electricity generated.