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Determine a comprehensive machine hour rate from the following: Original purchase price (subject to 10% p.a. depreciation on original cost) Rs. 324,000 Normal working hours

Determine a comprehensive machine hour rate from the following:

Original purchase price (subject to 10% p.a. depreciation on original cost) Rs. 324,000
Normal working hours for the month 200 hours
(Machine works for only 75% of normal capacity)
Wages to labour (per day for 8 hours) Rs. 125 per day
Power cost for the month for time worked Rs. 15,000
Electricity / lighting for the month Rs. 7,500
Insurance of plant and building (apportioned) for the year Rs. 16,250
Other general expenses per annum Rs. 27,500

Explain 2 uses of determining the machine hour rate.

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