Question:
A machine was purchased on February 2000 for Rs 5 lakh. The total cost of all machinery inclusive of the new machine was Rs 75 lakh. The further particulars of the machine are available as follows.
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Expected life of the machine: 10 years
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Scrap value at the end of the 10 years: Rs 5,000
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Repairs and maintenance for the machine during the year: Rs 2,000
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Expected number of working hours of the machine per year: 4,000 hours
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Insurance premium annually for the machines: Rs 4,500
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Electricity consumption for the machine per hour at 75 paise per unit: 25 units
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Area occupied by one machine: 100 sq. ft.
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Area occupied by other machine: 1,500 sq. ft.
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Rent per month of the department: Rs 800
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Lighting charges for 20 points for the whole department, out of which three points are for the machine: Rs 120 per month
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Compute the MHR for the two machines on the basis of the data given above.