A machine shop has eight identical handling machines manned by six operators. The machines cannot be worked without an operator wholly engaged to it. The original cost of all these eight machines works out to Rs. 8 lakhs. The following particulars are relaxed for a six-month period:
|
Normal available hours per month |
208 |
|
Absenteeism (without pay) hours |
18 |
|
Leave (with pay) hours |
20 |
|
Normal idle unavoidable hours |
10 |
|
Average rate of wages per day of 8 hrs |
Rs. 20 |
|
Production hours estimated |
15 % on wages |
|
Value of power consumed |
Rs. 8,050 |
|
Supervision and indirect labour |
Rs. 3,300 |
|
Lighting & Electricity |
Rs. 1,200 |
These particulars are for a year:
|
Repairs and maintenance including consumables |
= 3% on value |
|
Insurance |
= Rs. 40,000 |
|
Depreciation |
= 10% on the original cost |
|
Other sundry-work expenses |
= Rs. 12,000 |
|
General management expenses allocated |
= Rs. 54,530 |
You are required to work out a comprehensive machine hour rate for the machine shop.