In a factory there 5 machines, you are required to calculate Machine hour rate from the following data.

Space of the Departments 8,000

Sq.ft.Cost of machine (`) 20,000

Space occupied by each machine 1,600 Sq.ft.

Power consumed as indicated by meter is $3,000 p.a. for this machine.

Depreciation 7 % p.a

Estimated life 10 years (working hours 2,000 p.a)

Estimated Repairs p.a. for this machine `$520

Rent & Rates $9,000+

Lighting $750+ for all machines

Supervision 1,500

Other charges 4,000+

2/5 of the supervision is for this machine. There are three mechanics drawing `$50, `$60, `$70 p.m

respectively.