Page 196 - DCOM202_COST_ACCOUNTING_I

Cost Accounting – I

Notes Lubricating Oil per day ` 4 for 8 hours
Consumable Stores ` 10 per day for 8 hours

Wages of Operator ` 12 per day for 8 hours
7. From the following information, find out the Machine-hour Rate:
Cost of Machine ` 11,000
Scrap Value ` 680
Repairs for working life ` 1,500

Standing Expenses for 4 week-period ` 1,600
Effective working life 10,000 hours
power 6 unit per hour @ 5 paise per unit
Operating hours during 4 week period 120 hours

There are 40 machines in number in the workshop, each bearing equal overhead charges.
8. From the following information, compute Machine-hour Rate:
Cost of Machine ` 12,000
Scrap Value ` 500
Working Life 16,000 hours
Time taken for maintenance 250 hours

Time for Settings 5%
power 20 units @ 10 paise per unit
Cost of Repairs ` 1,600 p.a.
Workers engaged on two machines 2

Wages per man ` 200 p.m.
Requirement of Chemical ` 25 p.m.
Overhead Chargeable to this machine ` 225 p.m.
Insurance premium 1% p.a.
Productive Working Hours 2,200 hours p.a.

9. Compute Machine-hour Rate from the following data:
Cost of Machine ` 7,500
Scrap Value ` 500
Total Life 14,000 hours

Repairs and Maintenance Charges for the total life `3,500
Standing Charges for Shop for a month of 25 working days ` 200
Working Hours per day 8
Total Machines 10
power used per machine ` 50 p.m.
Machine Insurance 2% of depreciation

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