Question

Calculate the machine hour rate:

Cost of Machine –Rs.12000; Estimated scrap value:Rs.3000

Power of consumption per hour -5units @Rs.0.06 per unit.

Total Repair and Maintenance Charges -Rs.1125:

Standing Charges per year (1800hours) as follows:

1. Rent(1/5th area is occupied) Rs.780

2. Lighting (out of 12points, 2 are used for machine) Rs.288

3. Insurance – Rs.96 and

4. Wage (1/4th for machine) Rs.6000​

Answer 1

Answer:

machine hour rate= standing charges + flactuation charges

                            =2.573+5.925

                            = 8.498

Explanation:

in standing charges

rent = 156; lighting=2880;insurance=96;wage=1500

in flactuation charges

for dep = 12000-3000=9000/1800=5

power=0.3;total repairs=1125/1800=0.625

actually i have confusion in the lighting charges so plz take a view on that but rest is correct as per my knowledge.