|
(i) |
Cost of each machine is Rs. 32,000 and the residual value after the expiry of the useful life of 10 years is Don't use plagiarized sources. Get Your Custom Essay on
you are required to compute the machine hour rate for a machine 618408
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|
Rs. 8,000 |
|
(ii) |
Power consumption p.a. as per metre reading (each machine uses 10 units of power@ 0.50 paise per unit) |
Rs. 30,000 |
|
(iii) |
Repairs and maintenance for 5 machines p.a |
Rs. 6,000 |
|
(iv) |
Rent and rates for the shop p.a. |
Rs. 24,000 |
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(v) |
Electricity and lighting for the shop |
Rs. 2,400 |
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(vi) |
Supervision: Two supervisors for the shop salary being Rs. 100 p.m. each. |
|
|
(vii) |
Sundry supplies such as lubricating oil, cotton waste, etc., for the shop |
Rs. 2,000 |
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(viii) |
Canteen expenses for the shop p.a. |
Rs. 1,200 |
|
(ix) |
Hire-purchase annual instalment payable for the machines including Rs. 600 as interest |
Rs. 2,500 |
You are required to compute the machine hour rate for a machine.
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