Question

(Ans. Machine Hour Rate = Rs. 251
10. From the following details below you are required to compute a comprehensive machine hour rate :
1. Original purchase price of machine Rs. 21,600, Depreciation 10% p.a. on original cost
2. Normal working hours for the month 200 Hours
(The machine works to only 75% of capacity)
3. Wages of Machine Man Rs. 4 per day of 8 Hours
4. Wages of Helper Rs. 2 per day of 8 Hours
5. Power Consumption (H.P.) estimated at Rs. 150 per month for the time worked.
6. Supervision Charges Rs. 300 per month.
7. Electricity and Lighting Rs. 75 per month
8. Repair and Maintenance Rs. 150 per month.
9. Insurance Rs. 1,000 per month.
10. General Expenses Rs. 2,160 per year.
11. Production bonus payable to workers 33% in terms of an award of basic wages and dearr
allowance.
12. Workers are also paid a fixed dearness allowance of Rs. 75 per month
13. Add 10% of basic wages and dearness allowances of against leave wages and holidays with
to arrive at a comprehensive labour cost for debit to production. ​

Answer 1

Answer:

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Explanation:

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