hour rate
Machine hour rate of 200 ton machine is 200*1.125= ?
A machine hour rate is the cost of one machine working for one hour. This is used in calculating overhead costs to work in process as opposed to using labor hours.
how to calculate machine hourly rate
The machine hour rate can have several disadvantages, including the potential for inaccurate cost allocation if machine utilization varies significantly. It may not account for other overhead costs, such as labor or maintenance, leading to misleading profit margins. Additionally, businesses with varying production levels may find it challenging to set a consistent rate, complicating budgeting and pricing strategies. Lastly, it can incentivize overuse of machines, potentially leading to increased wear and tear or reduced quality if not monitored properly.
The machine hour rate is advantageous because it provides a clear and straightforward method for allocating manufacturing overhead costs based on actual machine usage, allowing for better cost control and pricing strategies. However, its disadvantages include potential inaccuracies if machines are not consistently used or if overhead costs fluctuate significantly, leading to distorted cost assessments. Additionally, it may overlook other important factors like labor costs and operational inefficiencies. Thus, while useful, it should be applied alongside other costing methods for a comprehensive view.
what are advantages and disadvantages of shapper machine
Machine # 1 works at a rate of 1/2 truckload per hour, while machine 2 works at a rate of 1/4 truckload per hour. The two machines together work at a rate of 3/4 truckload per hour complete the job 1/(3/4) = 1-1/3 hours.
willy
Human hour refers to the amount of time a human works or is productive in a given hour, while machine hour refers to the amount of time a machine operates within the hour. Human hours are measured based on human labor and productivity, while machine hours are based on machine operation and efficiency.
The disadvantages of using a shaper machine are s many. There are higher chances of injury that may cut deep into the skin.
Contribution margin for per machine hour is as follows:total contribution margin / number of machine hours = contribution margin per hour
There are many pparameters taken into accont for getting machine hr rate like: Direct labour cost indirect labour cost machine cst(intial) depreciation tool, lubrication, coolant, ...etc and most importantly total m/c hr available