Question
Calculate the machine hour rate from the Information given below: Cost price of the secondhand asset Rs. 1,05,000 Scrap value of the asset at the
Calculate the machine hour rate from the Information given below:
Cost price of the secondhand asset Rs. 1,05,000 Scrap value of the asset at the end of its life
Rs. 15,000. Installation charges Rs. 5,000 Life of the asset 10 years
at the rate of 2000 working hours per year. Setup time 200 hours.
Repair charges 50% of depreciation Lubricating oil Rs. 2 per day of 8 hours.
Consumable stores Rs. 10 per day of 8 hours. Operators direct wages Rs. 4 per day of 8
Hours. Elective power consumption 10 units per hour at 0.70 per unit.
Rent for the factory 40000 per year. (factory having 5 other machines). Lighting Rs.160 per
month for the factory.
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