In a machine department of a factory there are five identical machines. From the particulars given below; prepare the machine hour rate for one of the machines. Space of the department 10,000 sq.mts. Space occupied by the machine 2,000 sq.mts. Cost of the machine (Rs.) 20,000 Scrap value of the machine (Rs.) 300 Estimated life of the machine 13 years Depreciation charged at 7 % p.a Normal running of the machine 2,000 hours Power consumed by the machine as shown by the meter 3,000 p.a Estimated repairs and maintenance throughout the working life of the machine (Rs.) 5,200 Sundry supplies including oil, waste etc. charged direct to the machine amount to Rs. 600 p.a. Other expenses of the department are : Rs. Rent and Rates 9,000 Lighting (to be apportioned according to workers employed) 400 Supervision 1,250 Other charges 5,000 It is ascertained that the degree of supervision required by the machine is 2/5th and 3/5th being devoted to other machines. There are 16 workers in the department of whom 4 attended to the machine and the remaining to the other machines.

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