A machine was purchased on 1st January, 2007 for Rs. 5 lakhs. The total cost of all machinery…

A machine was purchased on 1st January, 2007 for Rs. 5 lakhs. The total cost of all machinery inclusive of the new machine was Rs. 75 lakhs. The following further particulars were available.

Expected life of the machine – 10 years

Scrap value at the end of the life – Rs. 5,000

Repairs and maintenance for the machine during the year Rs. 2,000

Expected number of working hours of the machine per year 4,000

Insurance premium annually for all machines Rs. 4,00

Power consumption for the machine per hour @ Rs. 5 @ per unit = 25 units

Area occupied by the machine – 100 sq feet

Area occupied by other machines – 1,500 sq. feet

Rent per month of the department Rs. 800

Lighting charges for 20 points for the whole department out of which three points are for the new

machine – Rs.120 per month

Compute the machine hour rate for the machine.

"Is this question part of your assignment? We can help"

ORDER NOW

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *