This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1916 Excerpt: ... their entire share of this cost. The only advantage of this method is a slightly greater simplicity in the establishment of the hourly rate. On the whole the first method is preferable. The building expenses enumerated in the preceding paragraph are practically uniform for every part of the plant. Other expenses ...
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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1916 Excerpt: ... their entire share of this cost. The only advantage of this method is a slightly greater simplicity in the establishment of the hourly rate. On the whole the first method is preferable. The building expenses enumerated in the preceding paragraph are practically uniform for every part of the plant. Other expenses incident to the building may vary with different departments and floors. This includes such items as general lighting, which will be less in those departments having the. better natural lighting; heat, ventilation, and transportation equipment fixtures, such as traveling cranes and elevators. The total departme/ital expense for such items as these should be distributed to the machines in the departments served. Heat, general lighting, and ventilation are generally charged in proportion to the area occupied by the production center, and usually this same basis is also good for the cost of fixed transportation equipment, although, where greater refinement is desired, such equipment may be charged exclusively to the machines served by it. MACHINE COST AS AN ELEMENT IN THE MACHINE HOUR RATE The specific machine cost, as an element of the machine hour rate, includes those expenses which arise out of, and are directly attributable to, the production center, machine, or work-place itself. This comprises charges on the investment, such as interest and royalties (when these are included in factory cost), taxes, insurance and depreciation. In addition there are the charges incidental to operating the machine, including power and special lighting, determined by measurement; supplies, taken from requisitions on stores; and maintenance, including cleaning and oiling, taken from purchase orders for parts or work secured outside, and from requisitions for materia...
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