Mini Case 2-4: Calculation of overhead absorption rate Calculate the machine hour rate for the month of January 1993, to cover overhead expenses below that relate to a particular set of machinery. It is assumed that the machine will work for 1800 hours p.a. and that it will incur Rs. 1125 p.a. for repair and maintenance during its lifespan. It is further assumed that 5 units of electricity available at Rs. 2 per unit will be used per hour