Calculate MHR for machine no. 7, which is one of seven machines in operation in a department of a factory.

(a) Cost of the machine no. 7: Rs 1,000

(b) Estimated scrap value at finish of working life (10 years): Rs 100.

(c) Normal running hours per year: 1,800 hours

(d) Machine no. 7 occupies one-fifth of the floor space of the department; the rent, rates, lighting etc. of which amounted to Rs 350 per annum

(e) Charges for electric power supplied to machine no. 7: Rs 200 per annum

(f ) Charges for oil, waste etc. supplied to machine no. 7: Rs 30 per annum

(g) Repair and maintenance machine estimated:

Rs 360 per annum.

(h) Cost of supervision and other expenses applicable to Machine no. 7 estimated at Rs 150 per annum. Labour cost of operating the machine should be ignored in your calculations.