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A machine costing Rs. 10,000 is expected to run for 10 years at the end of which period its scrap value is likely to be
A machine costing Rs. 10,000 is expected to run for 10 years at the end of which period its scrap value is likely to be 900. Repairs during the whole life of the machine are expected to be Rs. 1,800 and the machine is expected to run 4,380 hours per year on the average. Its power consumption is 15 units per hour, the rate per unit being 5 paise. The machine occupies one-fourth of the area of the department and has two points out of a total of ten for lighting. The foreman has to devote about one-third of his time to tha machine. The monthly rent of the department is Rs. 300 and the lighting charges amount to Rs. 80 per month. The foreman is paid a monthly salary of Rs. 480. Find out the machine hour rate, assuming insurance is @ 1% p.a. and the expenses on oil, etc., are Rs. 9 per month
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