Question

write two benefit of machine hour rate method​

Answer 1

Answer:

→It helps to compare the relative efficiencies and cost of operating different machines.

→It brings to light the existence and extent of idle time of machines.

→It enables the management to decide how far the use of machine work is preferable to manual work.

Answer 2

Answer:

$It provides useful data for estimatingcost of production, setting standards and for fixing selling prices for quotations. 7. It provides readymethod for measuring the cost of idlemachines if separate rates for fixed and variable overhead rates are calculated.$

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