Compute the comprehensive machine hour rate from the following:

(i) When setting and adjusting, full-time attention.
(ii) When machine is producing, one worker can look after three machines. (l) Labour rate Rs. 6, per hour.
You are required:
(h) to calculate the machine hour rate and (i) using the machine hour rate as calculated, work out the amount of factory overhead to be absorbed on the following:

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(a) Total cost of machine to be depreciated Rs. 2,30,000 (b) Life = 10 years (c) Departmental overheads (annual): Rent - Rs. 50,000 Heat & Light - Rs. 20,000 Supervision Rs.1,30,000 (d) Depreciation on straight-line method (e) Departmental area - 70,000 sq. m. (f) 26 machines in the department = (g) Annual cost of reserve equipment for the machines Rs. 1,500. (h) Hours run on production = 1,800 hours. (i) Hours for setting and adjusting = 200 hours. (j) Power cost = 0.50 per hour of running time. (k) Labour