A company has three different groups of machines for which it wishes to establish machine rates. A budget for the year ending 31 December 1985 shows the following overhead:

Additional information available:

Required:
Calculate a machine hour rate for each of the three groups of machines, showing clearly the basis of apportionment used.

Transcribed Image Text:

Consumable supplies: machine group 1 200 machine group 2 400 machine group 3 500 Maintenance: machine group 1 500 machine group 2 1,000 machine group 3 800 Power 3,000 Rent and rates 600 Heat and light 1,800 Insurance of buildings 300 Insurance of machinery 1.000 Depreciation of machinery 8,000 Supervision 1,800 19,900