CAN ANYONE PLZ HELP ME?
The following problem is an extract of the Question no 20( page no 4.22) of IPCC Practice Manual .
In a factory, a machine is 208 hours per month. It includes maintenance time 8 hrs, set up time 20 hrs. Set up time though productive bt does not require power. power is required for productive purpose only. Power required 25 units per hour at Rs. 2 per unit. What will be expense of power consumption for computing comprehensive machine hour rate?
As we know power consumption per machine hour = [ power consumption unit per hour * (working hrs - maintenance hr - set up hours during which no power is consumed) * Rate of power per unit ] divide by (total productive or effective machine hours )
My computation ;
Power Exp/ Machine hr = [25 units per hour * (208-8-20) hr * Rs. 2 per unit] divide by (208-8) hr = Rs. 45 per hr
Practice manual computation
power Exp / machine hr = [ 25 units per hour * (208-8-20) hr * rs. 2 per unit ] divide by (208-8-20) hr = Rs 50 per hour
Which one is correct? If my computation is wrong can u plz explain to clear my confusion?
Thanking U All
Shibendu banerjee
CAclubindia
