Work out machine hour rate from the following: Cost of machine: ₹90,00,000 Scrap value: NIL Freight & Installation charges : ₹10,00,000 Working Life: 10 years Working hours: 2,000 per year Repairing charges: 50% of d

CS Executive · Cost and Management Accounting · PYQS · June 2019
Work out machine hour rate from the following: Cost of machine: ₹90,00,000 Scrap value: NIL Freight & Installation charges : ₹10,00,000 Working Life: 10 years Working hours: 2,000 per year Repairing charges: 50% of depreciation Power: 10 units of per hour @ ₹10 per unit Lubricating oil: ₹200 per day of 8 hours Consumable stores: ₹1,000 per day of 8 hours Wages of operator: ₹400 per day
(A) ₹1075 per hour
(B) ₹875 per hour
(C) ₹950 per hour
(D) ₹1050 per hour

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Overheads

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