hii friends plzzzzzzz tell me what time should we consider while calculating machine hour rate if setting up time is productive or unproductive or nothing is mentioned or repairs & maint. is given???? What should v done while calculating standing & variable charges....
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machine hour rate
Replies (4)
machine hour rate= total annual factory overheads
no. of machine hours
if productive hrs and unproductive hrs are given then all the overheads are to be recovered by the productive hrs only...
repairs and maintenance are to be included in the factory overheads only....
standing and variable charges are nothing else but kinds of factory overheads....
all of them have to be added for calculating annual factory overheads.
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