WorksheetsMachine Hour Rate Quiz
Total questions: 12
Worksheet time: 6mins
What is the basis of apportionment of overheads to machines?
Insured value of machine
Ratio of floor area occupied by each machine
Time devoted by the supervisors to each machine
Number of light points of machine
What are the advantages of Machine Hour Rate?
Does not consider actual running time of the machine
Accurate method of absorption of overheads
Gives inaccurate results
Does not facilitate cost analysis for cost control
What is the limitation of Machine Hour Rate method?
Applicable only where cost centres mostly do production work on machines
Does not involve additional staff for clerical work
Easy to estimate machine hours well in advance of production
Does not lead to misleading results
How is the machine hour rate calculated?
Total overheads divided by effective working hours of the machine
Total overheads minus idle time of the machine
Total overheads multiplied by total running hours of the machine
Total overheads divided by total running hours of the machine
What is the comprehensive machine hour rate?
Overhead only absorbed by the cost units
Direct wages only absorbed by the cost units
Overhead and direct wages absorbed by the cost units in separate rates
Overhead and direct wages absorbed by the cost units in one single rate
Which expense is NOT considered while calculating the machine hour rate?
Repairs and maintenance
Power charges
Rent and rates
Direct wages
What is the basis for apportioning the supervisor's salary to machines?
Insured value of machine
Number of light points of machine
Time devoted by the supervisors to each machine
Ratio of floor area occupied by each machine
How are the standing charges allocated to machines?
Equally based on the space occupied by each machine
Based on the number of attendants for each machine
Based on the direct wages of the machine operator
Based on the power consumption of each machine
What is the hourly rate for variable charges if the depreciation is Rs. 2000 and the working hours are 1,200?
Rs. 20.00
Rs. 1.67
Rs. 5.00
Rs. 0.46
How is the total machine hour rate calculated?
Simple machine hour rate + Direct wages per hour
Comprehensive machine hour rate - Direct wages per hour
Simple machine hour rate - Direct wages per hour
Comprehensive machine hour rate + Direct wages per hour
How is the machine hour rate determined in the Machine Hour Rate method?
Total overheads divided by effective working hours of the machine
Total overheads minus idle time of the machine
Total overheads multiplied by total running hours of the machine
Total overheads divided by total running hours of the machine
What are the disadvantages of the Machine Hour Rate method?
Does not consider actual running time of the machine
Accurate method of absorption of overheads
Gives inaccurate results
Does not facilitate cost analysis for cost control
