12 A machine was purchased on 1-1-2017 for Rs. 5,00,000. Estimated life of the machine is 10 years and scrap value at the end of 10 years is Rs. 5,000, Repairs and maintenance 2,000 per annum, estimated number of working hours 4,000 per annum, Insurance premium Rs. 4,000 per annum, Electricity consumption 25 units per hour @ 75 paise per unit, Rent per month Rs. 800, Lighting charges for 20 points for the whole department, out of which 3 points are for the machine Rs.120 per month. Compute machine hour rate.
12 A machine was purchased on 1-1-2017 for Rs. 5,00,000. Estimated life of the machine is 10 years and scrap value at the end of 10 years is Rs. 5,000, Repairs and maintenance 2,000 per annum, estimated number of working hours 4,000 per annum, Insurance premium Rs. 4,000 per annum, Electricity consumption 25 units per hour @ 75 paise per unit, Rent per month Rs. 800, Lighting charges for 20 points for the whole department, out of which 3 points are for the machine Rs.120 per month. Compute machine hour rate.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:12 A machine was purchased on 1-1-2017 for Rs. 5,00,000. Estimated life of
the machine is 10 years and scrap value at the end of 10 years is Rs. 5,000,
Repairs and maintenance 2,000 per annum, estimated number of working hours
4,000 per annum, Insurance premium Rs. 4,000 per annum, Electricity
consumption 25 units per hour @ 75 paise per unit, Rent per month Rs. 800,
Lighting charges for 20 points for the whole department, out of which 3 points are
for the machine Rs.120 per month. Compute machine hour rate.
Roto (4000 Hrs)
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