Ilustration 5.8: From the following information, compute machine hour rate : Cost of the machine Rs.44,000 Rs.4,000 Rs.25,000 Scrap value Rent for the workshop(per annum) General lighting for the workshop (per month) Power consumption 20 units per hour Rs.160 : Rs.20 per 100 units Rs.4,000 : 75% of depreciation Rs.3,000 Administrative expenses allocated to the machine (p.a.) : Repairs and maintenance Workshop supervisor's salary (per month) Estimated working time per year :50 weeks of 40 hours Setting up time which is regarded as productive time (p.a.) 200 hours Effective life of the machine 10 years The machine occupies 1/4h area of the workshop. The supervisor is expected to devote 1/3" of his time in supervising the machine. [Rs.18.47]

Ilustration 5.8: From the following information, compute machine hour rate : Cost of the machine Rs.44,000 Rs.4,000 Rs.25,000 Scrap value Rent for the workshop(per annum) General lighting for the workshop (per month) Power consumption 20 units per hour Rs.160 : Rs.20 per 100 units Rs.4,000 : 75% of depreciation Rs.3,000 Administrative expenses allocated to the machine (p.a.) : Repairs and maintenance Workshop supervisor's salary (per month) Estimated working time per year :50 weeks of 40 hours Setting up time which is regarded as productive time (p.a.) 200 hours Effective life of the machine 10 years The machine occupies 1/4h area of the workshop. The supervisor is expected to devote 1/3" of his time in supervising the machine. [Rs.18.47]

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject : Economy and Engineering Management
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