A Laser cutting machine is costed on a machine hour rate basis. On the basis of the given information determine the cost for running the machine for 45 hours to complete a specific customer order. Select your answer (to the nearest £1) from A to E below. Time used (for this specific order) 45 hours Power cost of machine £2-00 per hour Depreciation and annual running costs (including labour) £350,000 per year The expected running time of the machine is 235 days per year with two 7.5 hour shifts each day. £3998 £4558 £8936 £4468 O £9026

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...
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A Laser cutting machine is costed on a machine hour rate basis.
On the basis of the given information determine the cost for running the machine for 45 hours to complete a specific
customer order. Select your answer (to the nearest £1) from A to E below.
Time used (for this specific order)
45 hours
Power cost of machine
£2-00 per hour
Depreciation and annual running costs (including labour)
£350,000 per year
The expected running time of the machine is 235 days per year with two 7.5 hour shifts each day.
O £3998
£4558
£8936
O £4468
O £9026
DELL
Transcribed Image Text:A Laser cutting machine is costed on a machine hour rate basis. On the basis of the given information determine the cost for running the machine for 45 hours to complete a specific customer order. Select your answer (to the nearest £1) from A to E below. Time used (for this specific order) 45 hours Power cost of machine £2-00 per hour Depreciation and annual running costs (including labour) £350,000 per year The expected running time of the machine is 235 days per year with two 7.5 hour shifts each day. O £3998 £4558 £8936 O £4468 O £9026 DELL
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