Calculate the machine hour rate from the following:
|
Rs |
|
|
Cost of machine |
18,000 |
|
Cost of installation |
2,000 |
|
Scrap value after 10 years |
2,000 |
|
Rates and rent for a quarter for the shop |
600 |
|
General lighting |
200 p.m. |
|
Shop supervisor‘s salary |
Rs.6,000 per quarter |
|
Insurance premium for a machine |
120 p.a. |
|
Estimated repair |
200 p.a. |
|
Power 2 units per hour @ Rs.150 per 100 units |
|
|
Estimated working hours p.a. 2,000 |
|
The machine occupies 1/4th of the total area of the shop. The supervisor is expected to devote 1/6th of his time for supervising the machine. General lighting expenses are to be apportioned on the basis of floor area.