I am Working as a Cost Accountant in an Org. We have difference in openion to Calculate Machine Hour rate. Some of my top management is using thumb rule i.e. 1000 for 10000000, while i am calculating it on (Machine Cost + Electricity + Maintainance + Consumable - Scrap Value )/ ( Life of mach)/No of Running Days/ No. of Running hours/ OEE.
Calculation based on my Machine Hr. is very less as compare to the current practice.
Plesae let me know the Current practice to calculate machine Hour rate ?