Compute the machine hour rate of a machine from the following information: Cost of the machine: ₹18,000 Cost of installation: ₹2,000 Scrap value after 10 years: ₹2,000 Rates and rent for a quarter for the shop: ₹600 Gene
CS Executive · Cost and Management Accounting · PYQS · June 2014
Compute the machine hour rate of a machine from the following information: Cost of the machine: ₹18,000 Cost of installation: ₹2,000 Scrap value after 10 years: ₹2,000 Rates and rent for a quarter for the shop: ₹600 General lighting: ₹200 p.m. Shop supervisors salary: ₹6,000 per quarter Insurance premium for a machine: ₹120 p.a. Estimated repairs: ₹200 p.a. Power: 2 units per hour @ ₹150 per 100 units Estimated working hours p.a. are 2,000. The machine occupies 1/4 th of the total area of the shop. The supervisor is expected to devote 1/6 th of his time for supervising the machine. General lighting expenses are to be apportioned on the basis of floor area.
Topics: Overhead Costing
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