Method of calculation of machine hour rate?

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Hi, I would like to understand the cost components involved in calculation of Machine Hour Rate. Regards, Karanth

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meredith limited bought a machine for 30000 on ist jan 1992 and on the date estimated tha it would keep the machine for five years.at the end of the five year period the machine would have an estimated residual value of 5000.it was estimated that the machine would be used for 1000 hours in the year...

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