Question
The following annual charges are incurred in respect of a machine in a shop where manual labor is almost nil and work is done by
The following annual charges are incurred in respect of a machine in a shop where manual labor is almost nil and work is done by means of five machines of exactly the same type of specification:
(i) Rent and rates (proportional to the floor space) for the shop | Rs 6,000 |
(ii) Depreciation on each machine | Rs 1,000 |
(iii) Repairs and maintenance for the five machines | Rs 1,200 |
(iv) Power consumed (as per the meter) at 5 paise per unit for the shop | Rs 3,000 |
(v) Electric charges for light in the shop | Rs 600 |
(vi) Attendants: There are two attendants for the five machines, and they are each paid Rs 80 per month. | |
(vii) Supervision: For the five machines in the shop, there is one supervisor whose emoluments are Rs 300 per month. | |
(viii) Sundry supplies for the shop is Rs 500. | |
(ix) Hire purchase installments payable for the machine (including Rs 300 as interest) is Rs 1,200. |
The machine uses 10 units of power per hour. Calculate the MHR for the machine for the year.
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