. Compute the machine hour rate? ii. Ascertain the cost of a job which requires 1200 machine hours to complete. The job, it is estimated, shall consume material worth tk 12,000 and wages tk 8,000.
A factory operates 48 weeks a year. For the rest of the weeks all workers are on holiday at without pay. The working week is of 48 hours.
There are six identical machines in the machine shop. The cost of all machines in together is Tk 4, 20,000. Estimated working life and probable scrap value of each machine is 10 years and Tk 2,000 respectively.
Three foremen are employed in the machine shop and each is paid tk 500 per week. The cost of repairs and maintenance of all machines is tk 10,000 per year. The monthly rent and lighting charges of the machine shop are tk 8,000 and tk 4,500 respectively. The hourly power consumption of each machine is Tk 0.50.
Requirements:
i. Compute the machine hour rate?
ii. Ascertain the cost of a job which requires 1200 machine hours to complete. The job, it is estimated, shall consume material worth tk 12,000 and wages tk 8,000.
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