Question

Which formula represents the Machine Hour Rate?

• A. (Total Machine Cost) / (Total Depreciation Hours)
• B. (Total Standing & Running Costs) / (Total Machine Hours)
• C. (Power + Fuel) / Hours Used
• D. (Fixed Costs Only) / Hours Worked

Answer 1

Answer:

B. (Total Standing & Running Costs) / (Total Machine Hours)

Machine Hour Rate = (Standing Charges + Running Charges) ÷ Total Machine Hours