Compute the machine hour rate from the following data: (i) Total machine cost to be depreciated (ii)

Compute the machine hour rate from the following data:

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(i) Total machine cost to be depreciated (ii) Life 10 years. (iii) Depreciation on straight line (iv) Departmental overheads (annual) Rent Heat and lighting Supervision (v) Department area Machine area (vi) 26 machines in the department (vii) Annual cost of reserve equipment for the machines (viii) Hours run on production (ix) Hours for setting and adjusting Rs. 2,30,000 Rs. 50,000 Rs. 20,000 Rs. 1,30,000 70,000 sq ft 2,500 sq ft 1,500 1,800 200 (x) Power cost Re. 0.50 per hour of running time (xi) Labour (a) when setting and adjusting, full time attention; (b) when machine is producing; one man can look after 3 machines. (xii) Labour rate Rs. 6 per hour