There are fi ve identical machines in a work shop. The annual charges paid for them are

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There are fi ve identical machines in a work shop. The annual charges paid for them are as follows:

(a) Rent and rates in proportion to fl oor space occupied Rs. 4800

(b) Depreciation for each machine Rs. 500

(c) Power consumed as per metre @ 5 paise per unit for the shop Rs. 3,000

(d) Repairs and maintenance for 5 machines Rs. 1,000.

(e) Electric charges for the light in the shop Rs. 450

(f) Attendants:

There are 2 attendants for the machine and each are paid Rs. 60 per month.

(g) Supervision:

For the fi ve machines in the shop there is one supervisor whose emoluments are Rs. 250 p.m.

(h) Sundry supplies such as lubricants and cotton waste for the shop is Rs. 450.

The machines use 10 units of power per hour.

Calculate the machine hour rate for the machine for the year.

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Cost Accounting

ISBN: 9788131732076

1st Edition

Authors: V. Rajasekaran, R. Lalitha

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