Modern Machines Ltd. has three production departments (A, B and C) and two service departments (D and E). From the following figures extracted from the records of the company, calculate the overhead rate per labour hour

The expenses of service departments D and E are to be apportioned as follows:

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Rs Indirect materials 15,000 Indirect wages 10,000 Depreciation on machinery 25,000 Depreciation on buildings 5,000 Rent, rates and taxes 10,000 Electric power for machinery 15,000 Electric power for lighting 500 General expenses 15,000 95,500 Items Direct materials (Rs) Direct wages (Rs) Value of machinery (Rs) Floor area (square feet) HP of machines Total A B C D E 60,000 20,000 10,000 19,000 40,000 15,000 15,000 2,50,000 60,000 1,00,000 6,000 5,000 4,000 2,000 4,000 40,000 25,000 25,000 50,000 15,000 10,000 10,000 5,000 10,000 150 50 60 30 5 5 Number of light points 50 15 10 10 5 10 Labour hours 15,000 5,000 5,000 2,000 1,000 2,000