Compute the hourly rate of the machine

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A factory has an overhead rate on labor of 75% and an overhead rate on machines of 25%. A certain machine costs $57,000 with a lifetime of 10 years and a return rate of 3%. It takes 3 workers to operate the machine, and they are paid $11/hr. Also, the machine will be operated at 100% utilization for one 8 hr shift per day, 7 days/wk, 52 wks/yr.

A) Compute the hourly rate of the machine.

B) Compute the hourly rate of the machine if it is operated at 50% utilization for three 8 hr shifts per day, 5 days/wk, 50 wks/yr.

Reference no: EM132094288

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