Machine Hours Rate: Formula and Calculation .
Calculate the machine hour rate on the basis of the following particulars: (i) cost of the machine Rs 24 lakhs (ii) Customs duty, insurance, freight, etc. Rs 11 lakhs. (iii) Installation expenses Rs 3 lakh (iv) Cost of tools adequate for 2 years only Rs 4 lakhs, (v) Cost of machine room Rs 3 lakhs