A machine was purchased on 01 January 1990 for Rs 5 lakh. The total cost of all
Question:
A machine was purchased on 01 January 1990 for Rs 5 lakh. The total cost of all machinery inclusive of the new machine was Rs 75 lakh. Further particulars are available as follows:
Expected life of machine: 10 years Scrap value at the end of 10 years: Rs 5,000 Repairs and maintenance for the machine during the year: Rs 2,000 Expected number of working hours of the machine per year: 4,000 hours Insurance premium annually for all the machines: Rs 4,500 Electricity consumption for the machine per hour (at 75 paise per unit): 25 units Area occupied by the machine: 100 sq. ft.
Area occupied by other machines: 1,500 sq. ft.
Rent per month of the department: Rs 800 Lighting charges for 20 points for the whole department, out of which three points are for the machine: Rs 120 per month.
Compute the MHR for the new machine on the basis of the data given above.
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