Cost accounting
Querist : Anonymous
COMPUTE MACHINE HOUR RATE..FOR JANUARY
COST OF MACHINE- 12000
ESTIMATED SCRAP VALUE-2000
EFFECTIVE WORKING LIFE 5000HR
HOURS WORKED IN JANUARY -100
ESTIMATE COST OF REPAIR & MAINTANCE OVER THE LIFE OF MACHINE - 2500
FIXED EXPENSES ALLOCATED TO MACHINE FOR JANUARY IS - 100
POWER USED BY THE MACHINE 20UNITS PER HOUR AT A COST OF 10 PAISA PER UNIT...
PLS SOLVE IT
ANS IS 5.50
Cost of repaid: Rs 2500
Divide the above by 5000 hours, you get Rs 2.5 per hour.
Then Cost of electricity per hour is 20 Units * 10 paisa : Rs 2
Then fixed expense for Jan : Rs 100, divide the same by total hours worked in January (100), Rs 1
2.5+2+1 = 5.5
Querist : Anonymous
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