Question 3

A Denim manufacturing department of a Company has 7 identical sewing machines operated by 5 operators.

The machine cannot be worked without an operator wholly engaged on it. The original cost of all the machines works out to Rs. 3 lakh. These particulars are furnished for a 6 month period.

1 The Supervisor spends equal time between the denim department and trouser department

2 The total number of light points in the manufacturing units are 30. Out of these, the denim department uses 16 light points. The total lighting expense for the year was Rs. 6,750

3 The General Management expenses for the year amounted to Rs. 19,000. The company allocates 65% of these expenses to the denim department

4 The following are the other particulars for the year :

You are required to find out the simple and comprehensive machine hour rate for the above machines of the denim department