calculate the mhr for the recovery of overheads for a group of three machines from t 559082

Calculate the MHR for the recovery of overheads for a group of three machines from the following data.

Original cost of three machines

Rs 60,000

Depreciation at 10% per annum (straight line method)

Repairs and average maintenance cost

Rs 20 per day

Power

30 paise per running hour per machine

Supervision for the group of machines

Rs 1,200 per month

Allocation of rent for three machines on a floor area basis

Rs 160 per month

Share of manufacturing overheads

Rs 300 per month for the group of machines

No. of working days

300 in a year

Normal operation

1 shift of 8 hours

Normal allowance for repairs, maintenance, change over, idle time etc.

10%

Effective running hours per annum (300 × 8 × 90/100)

2,160

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