b) c)

Compute Machine hour from the following data :

Cost of Machine -------------------------------------------------------------------Rs. 1,00,000

Installation charges-----------------------------------------------------------------Rs. 10,000 Estimated scrap value after the expiry of life(15 years)----------------------Rs. 5,000 Rent and rates for the shop per month ------------------------------------------Rs. 200 General lighting for the shop per month----------------------------------------Rs. 300 Insurance premium for the machine per annum-------------------------------Rs. 960 Repairs and maintenance for the machine per annum ------------------------Rs. 1000 Power consumption 10 units per hour @ rate of power per 100 units -----Rs. 20 Shop supervisor salary per month ------------------------------------------------Rs. 600 Estimated productive working hours 2000 hours P.A.

The machine occupies 14 of the total area of the shop. The supervisor is expected to devote 1/5 of his time for supervising this machine.