PPT - Machine Hour Rate B Com Notes | EduRev

Cost Accounting

Created by: Universal Academy

B Com : PPT - Machine Hour Rate B Com Notes | EduRev

 Page 1


Machine Hour
Rate 
Page 2


Machine Hour
Rate 
Meaning
• “The Machine Hour Rate is an actual or 
predetermined rate of cost apportionment for 
overhead absorption”
Page 3


Machine Hour
Rate 
Meaning
• “The Machine Hour Rate is an actual or 
predetermined rate of cost apportionment for 
overhead absorption”
Calculation
• “Machine hour Rate is calculated by dividing the 
cost to be apportioned or absorbed by the number 
of hours for which a machine or machines are 
operated or expected to be operated”
• Machine Hour Rate = Total Factory Overheads
Total Machine Hours
Page 4


Machine Hour
Rate 
Meaning
• “The Machine Hour Rate is an actual or 
predetermined rate of cost apportionment for 
overhead absorption”
Calculation
• “Machine hour Rate is calculated by dividing the 
cost to be apportioned or absorbed by the number 
of hours for which a machine or machines are 
operated or expected to be operated”
• Machine Hour Rate = Total Factory Overheads
Total Machine Hours
Basis of Apportionment 
• Rent, Rates, Taxes, etc.
• Depreciation
• Lighting
• Heating
• Power
• Repairs and Maintenance
• Supervisory Expenses
• Labour Welfare Expenses
• Insurance
• Lubricating Oil, Cotton Waste and Consumable Stores
• Interest included in Hire-Purchase.
Page 5


Machine Hour
Rate 
Meaning
• “The Machine Hour Rate is an actual or 
predetermined rate of cost apportionment for 
overhead absorption”
Calculation
• “Machine hour Rate is calculated by dividing the 
cost to be apportioned or absorbed by the number 
of hours for which a machine or machines are 
operated or expected to be operated”
• Machine Hour Rate = Total Factory Overheads
Total Machine Hours
Basis of Apportionment 
• Rent, Rates, Taxes, etc.
• Depreciation
• Lighting
• Heating
• Power
• Repairs and Maintenance
• Supervisory Expenses
• Labour Welfare Expenses
• Insurance
• Lubricating Oil, Cotton Waste and Consumable Stores
• Interest included in Hire-Purchase.
Presentation/Computation
• Standing Charges
• Machine Charges
Read More

Dynamic Test

Content Category

Related Searches

mock tests for examination

,

study material

,

Objective type Questions

,

Important questions

,

past year papers

,

PPT - Machine Hour Rate B Com Notes | EduRev

,

PPT - Machine Hour Rate B Com Notes | EduRev

,

practice quizzes

,

Previous Year Questions with Solutions

,

Summary

,

pdf

,

Free

,

MCQs

,

Exam

,

video lectures

,

Viva Questions

,

ppt

,

Extra Questions

,

Sample Paper

,

shortcuts and tricks

,

PPT - Machine Hour Rate B Com Notes | EduRev

,

Semester Notes

;