What is the maximum number of productive machine hours per m

What is the maximum number of productive machine hours per machine in one year?

Actually in a year other than leap year we have 365days*24hours=8760hours and in a leap year we have 366days*24 hours=8784hours. But in problems in Overheads chapter they are giving 10,000 Machine hours per machine per annum. How it is possible? Thanks in advance for answering me.

Replies (2)

please post the whole question in which you have doubt. simply on the basis of single statement we cant help out

Sir, In Overheads chapter in Cost Accounts subject, there is a topic called overhead recovery or overhead absorption rates/methods. In that one of the absorption method is based on Machine Hour Rate.

In that they had given, overhead rate per machine hour = Total overheads to be absorbed ÷ Total no. of machine hours.

In the problems they are giving that machine hours per machine per annum as 10,000 machine hours. Overheads to be absorbed as Rs.1,00,000/-. Overhead absorption rate based on machine hour method is Rs.10/- per machine hour.

My doubt is in an year there are 365 days and in a day there are 24 hours, so in total there can be 8760 hours in an year and 8784 hours in a leap year. But how can they give us 10,000 machine hours.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 07 November 2026
Article Assisstant

DPV & Associates

Chennai

CA Inter

View Details