18 Feb A machine was purchased on 1st January, 2007 for R
A machine was purchased on 1st January, 2007 for Rs. 5 lakhs. The total cost of all machinery inclusive of the new machine was Rs. 75 lakhs. The following further particulars were available.Expected life of the machine 10 yearsScrap value at the end of the life Rs. 5,000Repairs and maintenance for the machine during the year Rs. 2,000Expected number of working hours of the machine per year 4,000Insurance premium annually for all machines Rs. 4,00Power consumption for the machine per hour @ Rs. 5 @ per unit = 25 unitsArea occupied by the machine 100 sq feetArea occupied by other machines 1,500 sq. feetRent per month of the department Rs. 800Lighting charges for 20 points for the whole department out of which three points are for the newmachine Rs.120 per monthCompute the machine hour rate for the machine.
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