Depreciation Rate of Machine Tool given Machining and Operating Rate Solution

STEP 0: Pre-Calculation Summary
Formula Used
Depreciation Rate = (Machining and Operating Rate-(Wage Rate*(100+Operator's Overhead Percentage)/100))*100/(100+Machine Overhead Percentage)
Mt = (M-(Wo*(100+%Operator)/100))*100/(100+%Machine)
This formula uses 5 Variables
Variables Used
Depreciation Rate - Depreciation Rate is the rate at which the machine is depreciated across the estimated productive life of the machine.
Machining and Operating Rate - Machining and Operating Rate is the money charged for processing on and operating machines per unit time, including overheads.
Wage Rate - Wage Rate is defined as the worker's/operator's rate of pay.
Operator's Overhead Percentage - Operator's Overhead Percentage is the percentage of his Wage Rate spent indirectly on him, regardless of any revenue generated.
Machine Overhead Percentage - Machine Overhead Percentage is the percentage of Capital spent on it, regardless of any work it performs.
STEP 1: Convert Input(s) to Base Unit
Machining and Operating Rate: 100 --> No Conversion Required
Wage Rate: 70 --> No Conversion Required
Operator's Overhead Percentage: 20 --> No Conversion Required
Machine Overhead Percentage: 75 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
Mt = (M-(Wo*(100+%Operator)/100))*100/(100+%Machine) --> (100-(70*(100+20)/100))*100/(100+75)
Evaluating ... ...
Mt = 9.14285714285714
STEP 3: Convert Result to Output's Unit
9.14285714285714 --> No Conversion Required
FINAL ANSWER
9.14285714285714 9.142857 <-- Depreciation Rate
(Calculation completed in 00.004 seconds)

Credits

Created by Kumar Siddhant
Indian Institute of Information Technology, Design and Manufacturing (IIITDM), Jabalpur
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15 Estimation for Optimal Conditions Calculators

Time to Index Insert given Tool Changing Time for Disposable-Insert Tool
Go Time to Insert Index = (Time to Change One Tool*Average Number of Cutting Edges used per Insert-Time to Replace Index)/(Average Number of Cutting Edges used per Insert-1)
Estimated Tool Changing Time for Disposable-Insert Tool
Go Time to Change One Tool = (Time to Insert Index*(Average Number of Cutting Edges used per Insert-1)+Time to Replace Index)/Average Number of Cutting Edges used per Insert
Time to Replace Insert given Tool Changing Time for Disposable-Insert Tool
Go Time to Replace Index = Time to Change One Tool*Average Number of Cutting Edges used per Insert-Time to Insert Index*(Average Number of Cutting Edges used per Insert-1)
Depreciation Rate of Machine Tool given Machining and Operating Rate
Go Depreciation Rate = (Machining and Operating Rate-(Wage Rate*(100+Operator's Overhead Percentage)/100))*100/(100+Machine Overhead Percentage)
Operator's Overhead Percentage given Machining and Operating Rate
Go Operator's Overhead Percentage = ((Machining and Operating Rate-(Depreciation Rate*(100+Machine Overhead Percentage)/100))*100/Wage Rate)-100
Machine Overhead Percentage given Machining and Operating Rate
Go Machine Overhead Percentage = ((Machining and Operating Rate-(Wage Rate*(100+Operator's Overhead Percentage)/100))*100/Depreciation Rate)-100
Average Cutting Edges per insert given Tool Changing Time
Go Average Number of Cutting Edges used per Insert = (Time to Replace Index-Time to Insert Index)/(Time to Change One Tool-Time to Insert Index)
Operator's Wage Rate given Machining and Operating Rate
Go Wage Rate = (Machining and Operating Rate-(Depreciation Rate*(100+Machine Overhead Percentage)/100))*100/(100+Operator's Overhead Percentage)
Machining and Operating Rate
Go Machining and Operating Rate = (Wage Rate*(100+Operator's Overhead Percentage)/100)+(Depreciation Rate*(100+Machine Overhead Percentage)/100)
Cutting Edges used during Life of Holder given Estimated Tool Costs
Go Cutting Edges used during Life of Holder = Cost of the Holder/(Tool Cost-(Cost of Insert/Average Number of Cutting Edges used per Insert))
Average Cutting Edges used per insert given Estimated Tool Costs
Go Average Number of Cutting Edges used per Insert = Cost of Insert/(Tool Cost-(Cost of the Holder/Cutting Edges used during Life of Holder))
Working Hours per year given Depreciation Rate
Go Number of Working Hours per Year = Initial Cost of the Machine/(Amortization Period*Depreciation Rate)
Amortization given Depreciation Rate
Go Amortization Period = Initial Cost of the Machine/(Number of Working Hours per Year*Depreciation Rate)
Depreciation Rate of Machine Tool
Go Depreciation Rate = Initial Cost of the Machine/(Number of Working Hours per Year*Amortization Period)
Average Number of Regrinds Possible, given Estimated Tool Costs
Go Average Number of Regrinds Possible = Cost of a Tool/(Tool Cost-Cost of Grinding)

Depreciation Rate of Machine Tool given Machining and Operating Rate Formula

Depreciation Rate = (Machining and Operating Rate-(Wage Rate*(100+Operator's Overhead Percentage)/100))*100/(100+Machine Overhead Percentage)
Mt = (M-(Wo*(100+%Operator)/100))*100/(100+%Machine)

Machine Overhead Cost

Machine Overhead Cost refers to capital spent on the machines by the firm apart from their buying costs, which indirectly attribute to creating a product or service. These often include the capital spent on maintenance, storage, electricity, etc.

How to Calculate Depreciation Rate of Machine Tool given Machining and Operating Rate?

Depreciation Rate of Machine Tool given Machining and Operating Rate calculator uses Depreciation Rate = (Machining and Operating Rate-(Wage Rate*(100+Operator's Overhead Percentage)/100))*100/(100+Machine Overhead Percentage) to calculate the Depreciation Rate, The Depreciation Rate of Machine Tool given Machining and Operating Rate is a method to determine the maximum rate at which the machine can be depreciated across the life of the machine when the expense on Machining and Operating is limited. Depreciation Rate is denoted by Mt symbol.

How to calculate Depreciation Rate of Machine Tool given Machining and Operating Rate using this online calculator? To use this online calculator for Depreciation Rate of Machine Tool given Machining and Operating Rate, enter Machining and Operating Rate (M), Wage Rate (Wo), Operator's Overhead Percentage (%Operator) & Machine Overhead Percentage (%Machine) and hit the calculate button. Here is how the Depreciation Rate of Machine Tool given Machining and Operating Rate calculation can be explained with given input values -> 9.142857 = (100-(70*(100+20)/100))*100/(100+75).

FAQ

What is Depreciation Rate of Machine Tool given Machining and Operating Rate?
The Depreciation Rate of Machine Tool given Machining and Operating Rate is a method to determine the maximum rate at which the machine can be depreciated across the life of the machine when the expense on Machining and Operating is limited and is represented as Mt = (M-(Wo*(100+%Operator)/100))*100/(100+%Machine) or Depreciation Rate = (Machining and Operating Rate-(Wage Rate*(100+Operator's Overhead Percentage)/100))*100/(100+Machine Overhead Percentage). Machining and Operating Rate is the money charged for processing on and operating machines per unit time, including overheads, Wage Rate is defined as the worker's/operator's rate of pay, Operator's Overhead Percentage is the percentage of his Wage Rate spent indirectly on him, regardless of any revenue generated & Machine Overhead Percentage is the percentage of Capital spent on it, regardless of any work it performs.
How to calculate Depreciation Rate of Machine Tool given Machining and Operating Rate?
The Depreciation Rate of Machine Tool given Machining and Operating Rate is a method to determine the maximum rate at which the machine can be depreciated across the life of the machine when the expense on Machining and Operating is limited is calculated using Depreciation Rate = (Machining and Operating Rate-(Wage Rate*(100+Operator's Overhead Percentage)/100))*100/(100+Machine Overhead Percentage). To calculate Depreciation Rate of Machine Tool given Machining and Operating Rate, you need Machining and Operating Rate (M), Wage Rate (Wo), Operator's Overhead Percentage (%Operator) & Machine Overhead Percentage (%Machine). With our tool, you need to enter the respective value for Machining and Operating Rate, Wage Rate, Operator's Overhead Percentage & Machine Overhead Percentage and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
How many ways are there to calculate Depreciation Rate?
In this formula, Depreciation Rate uses Machining and Operating Rate, Wage Rate, Operator's Overhead Percentage & Machine Overhead Percentage. We can use 1 other way(s) to calculate the same, which is/are as follows -
  • Depreciation Rate = Initial Cost of the Machine/(Number of Working Hours per Year*Amortization Period)
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