Required: CALCULATE the cost of running one machine for a four week period.

A machine shop cost centre contains three machines of equal capacities. To operate these three machines nine operators are required i.e. three operators on each machine. Operators are paid $ 20 per hour. The factory works for fourty eight hours in a week which includes 4 hours set up time. The work is jointly done by operators. The operators are paid fully for the fourty eight hours. In additions they are paid a bonus of 10 per cent of productive time. Costs are reported for this company on the basis of thirteen four-weekly period. The company for the purpose of computing machine hour rate includes the direct wages of the operator and also recoups the factory overheads allocated to the machines. The following details of factory overheads applicable to the cost centre are available: Depreciation 10% per annum on original cost of the machine. Original cost of the each machine is $52,000. L Maintenance and repairs per week per machine is $60. Consumable stores per week per machine are $75. Power: 20 units per hour per machine at the rate of 80 paise per unit. No power is used during the set-up hours