Accounting

A machine shop has 8 identical machines manned by 6 operators. The machine cannot work without an operator wholly engaged on it. The original cost of all the 8 machines works out to 32,00,000. The following particulars are furnished for a six months period : Normal available hours per month per operator 208 Absenteeism (without pay) hours per operator 18 Leave (with pay) hours per operator 20 Normal unavoidable idle time hours per operator 10 Average rate of wages per day of 8 hours per operator 100 Production bonus estimated 10% on wages Power consumed 40,250 Supervision and Indirect Labour 16,500 * 6,000 Lighting and Electricity The following particulars are given for a year : Insurance 3,60,000 Sundry work Expenses 350,000 Management Expenses allocated 35,00,000 Depreciation 10% on the original cost Repairs and Maintenance (including consumables): 5% of the value of all the machines. Prepare a statement showing the comprehensive machine hour rate for the machine shop