If cost of machine is ₹1,00,000, installation charges ₹5,000, scrap ₹3,000 and life of machine is 50,000 hours, then depreciation per hour would be :

CS Executive · Cost and Management Accounting · PYQS · December 2020
If cost of machine is ₹1,00,000, installation charges ₹5,000, scrap ₹3,000 and life of machine is 50,000 hours, then depreciation per hour would be :
(A) ₹2.00
(B) ₹2.04
(C) ₹1.96
(D) ₹1.94

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Machine Hour Rate

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