Question

Calculate machine hour rate
Consumable stores $ 600 For A machine
Consumable stores 1 000 For B machine
Repairs 800 For A machine
Repairs 1 200 For B machine
Heat and light 360
Rent 1 200
Insurance of building 4 800
Insurance of machines 800
Depreciation of the machines
700
Room services 60
General charges 90
Additional information:
Working hours Area (sq ) Book value ($)
A Machine 10 000 100 12 000
B Machine 25 000 500

Answer 1

Answer:

ADVERTISEMENTS: Under this method, hourly rate of depreciation is calculated. The cost of the asset (less residual value if any) is divided by the estimated working hours. The actual depreciate for any given period depends upon the working hours during that year.(1)MEANING: - Machine hour rate (MHR) is the cost of running a machine for one hour. Under this method machines hours are. used as the basis for production overhead absorption rate.Machine hour rate is obtained by dividing the total running expenses of a machine during a particular period by the number of hours the machine is estimated to work during that period.

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Answer 2

Answer:

calculate machine hour rate