Discuss the below in detail:
Q: A production machine was purchased 6 years ago for an installed price of $530,000. At the time it was anticipated that the machine would last 10 years and be used 4000 hours per year. However, it is now in need of major repairs that costs &125,000. If these repairs are made, the machine will last 4 more years, operating 4000 hours per year. Applicable overhead rate=3%. Assume availability = 100%. Determine the equipment cost rate for this machine