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Variable Charges : Cost of machine Rs. 20,000 Less : scrap Rs. 2,000 Depreciation for 10,000 hours = 18,000 18,000 Hence, for one hour = 10,000 Repairs and maintenance 200 Rs.200 per month of 200 hours 200 1.80 }; p3 Power 5 units per hour @ 20 paise Machine Hour Rate. 1.00 1.00 4.30 Illustration: 10 A department is having 3 machines. The figures indicate the departmental expenses. Calculate the machine hour rate in respect of these machines from the informations given below: Rs. Depreciation of machinery Depreciation of building Repairs to machinery Insurance of Machinery Indirect wages Power Lighting Miscellaneous expenditure 12,000 2,880 4,000 800 6,000 6,000 800 4,200 36,680 Absorption of Overhead 437 Additional Information Particulars Machine A Machine B Machine D 2,400 10,000 Direct Wages Power units No. of workers Light points Space Cost of Machine Hours worked Rs.1,200 30,000 4 8 400 sq.fit Rs.3,00,000 200 24 800 sq.fit Rs.1,20,000 300 2.400 20,000 8 48 800 sq.fit Rs. 1,80,000 300