The following particulars relate to a machine:
|
Purchase price of machine |
Rs 80,000 |
|
Installation expenses |
Rs 20,000 |
|
Rent per quarter |
Rs 3,000 |
|
General lighting for the whole area |
Rs 200 per month |
|
Supervisor’s salary |
Rs 6,000 per quarter |
|
Insurance premium for the machine |
Rs 600 per annum |
|
Estimated repair for the machine |
Rs 1,000 per annum |
|
Estimated consumable stores |
Rs 800 per annum |
|
Power: 2 units per hour at |
Rs 50 per 100 units |
The estimated life of machine is 10 years, and the estimated scrap value is Rs 20,000. The machine is expected to run 20,000 hours in its life. The machine occupies 25% of the total area. The supervisor devotes one sixth of his time for the machine.You are required to work out MHR.