A machine is purchased for cash at Rs. 18,400. Its working life is estimated to be 36,000 hours after which its scrap value is estimated at Rs. 400. It is assumed from the past experience that:

(i) the machine will work for 3,600 hours annually.

(ii) the repair charges will be Rs. 2,160 during the whole period of life of the machine.

(iii) the power consumption will be 10 units per hour at Re 0.10 per unit.

(iv) other annual standing charges are estimated to be:

You are required to compute the machine hour rate on the basis of the above data for allocation of work expenses to all jobs for which the machine is used.

Transcribed Image Text:

(a) Rent of department | machine t (b) Light (24 points in the departments - 4 points engaged in the machine) (c) Foreman's salary th of his time is occupied in the machine (d) Insurance premium for machinery (e) Cotton waste Rs. 1,560 576 12,000 72 120