The following annual charges are incurred in respect of a machine shop where the manual labour is almost nil.

There are fi ve identical machines in the shop.

You are required to compute the machine hour rate for a machine.

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(i) Cost of each machine is Rs. 32,000 and the residual value after the expiry of the useful life of 10 years is Rs. 8,000 (ii) Power consumption p.a. as per metre reading (each machine uses 10 units of power@ 0.50 paise per unit) Rs. 30,000 (iii) Repairs and maintenance for 5 machines p.a Rs. 6,000 (iv) Rent and rates for the shop p.a. Rs. 24,000 (v) Electricity and lighting for the shop Rs. 2,400 (vi) Supervision: Two supervisors for the shop salary being Rs. 100 p.m. each. (vii) Sundry supplies such as lubricating oil, cotton waste, etc., for the shop Rs. 2,000 (viii) Canteen expenses for the shop p.a. Rs. 1,200 (ix) Hire-purchase annual instalment payable for the machines including Rs. 600 as interest Rs. 2,500