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Works overhead is Rs 40 000 total machine hours is 8500...

This question belongs to Commerce Costing
Costing
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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?

Answer & Solution
Correct Answer: Option D
Machine hour rate = Works overhead / Machine hour
= 40000 / (8500 - 500) = Rs. 5 per hour.
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1 Comment
Naaresh Kumar
Naaresh Kumar 8 years ago
machine hour rate= overhead cost/Actual machine hours

=40000/8500-500= Rs.5p hr
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