Question

from the following information, compute machine hour rate -7 Cost of the machine 50,000 scrap value 5,000 Rent for the workshop 20,000 General lighting for the workshop 120 per month Power consumption 25 units per hour 20 per every 100 units Administrative expenses allocated to the machine 3,000 per annum Repairs and maintenance 60% of depreciation. Workshop supervisor's salary 5,000 per month Estimated working time per year 52 weeks of 40 hours each. Setting up time which is regarded as unproductive time 180 hours per year Effective life of the machine 10 years Current is taken during setup. The machine occupies 1/4 area of the workshop. The supervisor is expected to devote one-third of his time in supervising the machine.​

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