Question
Example the computation of machine hour rate with the help of an example.
Answer :
Word Count : 462
_____ _______ _______ ________ ___ ___ ____ _____ ______ ______.
____ ____ _______ ________ ____ ____ __________ _________ ________.
__________ ____ ___ _________ ________ _____ ______ ______ ______ ______ ____ __________.
_______ ______ __________ ____ __________.
_______ ___ _______ _____ __________.
______ ________ ______ _________ ____ ____ _____ ____ __________ __________ _____ ______.
_________ __________ ____ __________ _______ _____ _________ ________.
_______ __________ _________ _______ ______ _________ _______.
_______ ________ ___ ________ _________ __________ ____ _____ ____ __________ ______.
_____ _________ ________ ____ ______ _______ __________ _________ ______.
__________ _______ ______ ___ _______ ______ ________ ___ ______.
___ __________ ___ ___ ____ _______ ________ _________ __________ ______ _______.
_________ ___ _______ ___ ___ __________ _________ _______ _________ __________.
_________ _____ _________ ______ __________.
________ _________ ______ _________ ___ ______.
________ ______ _____ ______ ____ ___ _______ ___ _________ __________ _______ ______.
_____ ________ ______ _______ _____.
__________ ________ _________ _______ ______.
___ ________ ________ _______ __________.
____ ____ ______ ___ ___ _________ ___ _________ _______ _______ _____ _____.
_____ _________ ___ __________ __________ ____ ______ _______ ______.
__________ ______ ________ _______ ___ ____ _____ _________ ________.
______ ___ _________ _________ _______ ____ ________.
__________ ______ _____ _______ ________ ______ ______ __________ ____.
____ ___ ______ ____ ________ _________ _________ __________ _______ _____ ___.
__________ ___ ____ _______ ___ ________ ______ ________ __________.
________ _____ _______ ________ ______ _______ _________ ______ _________ _______ ______ _____.
_________ __________ _______ ________ ______ ____.
__________ _________ _________ __________ ________ ______.
___ ________ _______ _________ _____ _______.
________ _______ ____ _______ _________ _______ ________ ______ _________ ______ _______ _________.
_________ ______ __________ ______.
Skip in 10
Machine hour rate is a method of absorbing factory overheads to production on the basis of machine hours consumed by a job or product. It is particularly suitable in industries where production is carried out mainly by machines and where machine time forms a significant portion of the total production cost. Under this method, overhead expenses are allocated and apportioned to different machines, and the cost per machine hour is computed. The formula for machine hour rate is: Machine Hour Rate = Total Machine Overheads / Total Effective Machine Hours Overheads included in machine hour rate are classified into standing charges and machine expenses. Standing charges include rent and rates of factory building, lighting, insurance, supervision, and general factory expenses. Machine expenses include depreciation, power, repairs and maintenance, lubricants, and other expenses directly related to the machine. For example, suppose a factory has a machine with the following details for one year: Cost of machine: ₹1,00,000 Estimated scrap value: ₹10,000 Estimated life: 10 years Factory rent (for the section): ₹60,000 per year Total area of factory: 10,000 sq. ft. Area occupied by machine: 1,000 sq.
_______ ____ ____ _________ _______ ________ ______ ___ ______._____ _______ _______ ________ ___ ___ ____ _____ ______ ______.
____ ____ _______ ________ ____ ____ __________ _________ ________.
__________ ____ ___ _________ ________ _____ ______ ______ ______ ______ ____ __________.
_______ ______ __________ ____ __________.
_______ ___ _______ _____ __________.
______ ________ ______ _________ ____ ____ _____ ____ __________ __________ _____ ______.
_________ __________ ____ __________ _______ _____ _________ ________.
_______ __________ _________ _______ ______ _________ _______.
_______ ________ ___ ________ _________ __________ ____ _____ ____ __________ ______.
_____ _________ ________ ____ ______ _______ __________ _________ ______.
__________ _______ ______ ___ _______ ______ ________ ___ ______.
___ __________ ___ ___ ____ _______ ________ _________ __________ ______ _______.
_________ ___ _______ ___ ___ __________ _________ _______ _________ __________.
_________ _____ _________ ______ __________.
________ _________ ______ _________ ___ ______.
________ ______ _____ ______ ____ ___ _______ ___ _________ __________ _______ ______.
_____ ________ ______ _______ _____.
__________ ________ _________ _______ ______.
___ ________ ________ _______ __________.
____ ____ ______ ___ ___ _________ ___ _________ _______ _______ _____ _____.
_____ _________ ___ __________ __________ ____ ______ _______ ______.
__________ ______ ________ _______ ___ ____ _____ _________ ________.
______ ___ _________ _________ _______ ____ ________.
__________ ______ _____ _______ ________ ______ ______ __________ ____.
____ ___ ______ ____ ________ _________ _________ __________ _______ _____ ___.
__________ ___ ____ _______ ___ ________ ______ ________ __________.
________ _____ _______ ________ ______ _______ _________ ______ _________ _______ ______ _____.
_________ __________ _______ ________ ______ ____.
__________ _________ _________ __________ ________ ______.
___ ________ _______ _________ _____ _______.
________ _______ ____ _______ _________ _______ ________ ______ _________ ______ _______ _________.
_________ ______ __________ ______.
IGNOU ACADEMY
Your IGNOU journey, made easier.
- Solved Assignments
- Study Notes
- Guess Papers
- Question Papers
Continue Reading — It's Free
Sign in with Google to unlock more of this answer.
✓ Free access
✓ Unlock up to 60% of the answer
✓ No payment required
✓ Unlock up to 60% of the answer
✓ No payment required
Quick Google sign-in. No separate registration form.