X Ltd, having fifteen different types of automatic machines furnishes information as under for current year.
(i) Overhead expenses: Factory rent, `9,60,000 (floor area 80,000 sq. ft.); Heat and gas, `4,50,000, and Supervision, `12,00,000.
(ii) Wages of the operator are `480 per day of 8 hours. He attends to one machine when it is under set-up and two machines while they are under operation.
(iii) Cost of machine `4,50,000; Life of machine, 10 years, and scrap value at the end of its life, `50,000.
(iv) Annual expenses on special equipment attached to the machine are estimated at `30,000.
(v) Estimated operation time of the machine is 3,600 hours while set-up time is 400 hours per annum. (vi) The machine occupies 5,000 sq. ft. floor area.
(vii) Power costs `25 per hour while machine is in operation. Find out the comprehensive machine-hour rate of machine B. Also find out machine costs to be absorbed in respect of use of machine B on the following two work orders: