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 8 machines works out to Rs. 8 lakhs.

These particulars are furnished for a six-month period:

You are required to work out a comprehensive machine hour rate for the machine shop.

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Normal available hours per month Absenteeism (without pay) hours Leave (with pay) hours Normal and idle unavoidable hours Average rate of wages per day of 8 hours Production bonus estimated Value of power consumed Supervision and indirect labour Lighting & Electricity = 208 = 18 = 20 = 10 = Rs. 20 = 15% on wages = Rs. 8,050 = Rs. 3,300 These particulars are for a year: Repairs & Maintenance including consumables Insurance Other sundry-work expenses General-management expenses allocated = Rs. 1,200 = 3% on value = Rs. 50,000 = Rs. 15,000 = Rs. 60,000.