manufacturing company uses two large and four small identical machines. Each large machine occupies one quarter of the workshop and fully employs three workers, each small machine occupies half the space of a large machine and fully employs two workers. The workers are paid by piece work. Each of the six machines is estimated to work 1,440 hours per year, while the effective working life is taken as 12,000 working hours for each large machine and 9000 working hours for each of the small machines. Large machines cost Rs.20,000 each and small machines cost Rs. 4,000 each. Scrap values are Rs, 4,000 and Rs. 100 respectively. Repairs maintenance and oil are estimated to cost for each large machine Rs. 4,000 and each small machine Rs. 1,200 during its effective life. Power consumption cost is 5 paise per unit and amounts for a large machine 20 units per hour and for a small machine 2 units per hour. The manager is paid Rs. 4,800 a year and workshop supervision occupies ½ of his time, which is divided equally among the six machines. Details of other expenses are: Rent and rates to workshop: Rs. 6,400 a year Lighting (to be apportioned in the ratio of workers employed): Rs. 1,820 a year. Taking a period of three months as a basis, calculate the Machine Hour Rate for a large machine and small machine respectively
manufacturing company uses two large and four small identical machines. Each large machine occupies one quarter of the workshop and fully employs three workers, each small machine occupies half the space of a large machine and fully employs two workers. The workers are paid by piece work.
Each of the six machines is estimated to work 1,440 hours per year, while the effective working life is taken as 12,000 working hours for each large machine and 9000 working hours for each of the small machines. Large machines cost Rs.20,000 each and small machines cost Rs. 4,000 each. Scrap values are Rs, 4,000 and Rs. 100 respectively.
Repairs maintenance and oil are estimated to cost for each large machine Rs. 4,000 and each small machine Rs. 1,200 during its effective life.
Power consumption cost is 5 paise per unit and amounts for a large machine 20 units per hour and for a small machine 2 units per hour.
The manager is paid Rs. 4,800 a year and workshop supervision occupies ½ of his time, which is divided equally among the six machines.
Details of other expenses are:
Rent and rates to workshop: Rs. 6,400 a year
Lighting (to be apportioned in the ratio of workers employed): Rs. 1,820 a year.
Taking a period of three months as a basis, calculate the Machine Hour Rate for a large machine and small machine respectively
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