Q145
Works overhead is Rs 40,000, total machine hours is 8500 hours and time allowed for machine setting is 500 houRs What is the machine rate?
A.
Rs. 2 per hour
B.
Rs. 3 per hour
C.
Rs. 4 per hour
D.
Rs. 5 per hour
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Machine hour rate = Works overhead / Machine hour = 40000 / (8500 - 500) = Rs. 5 per hour.