FIFTEENTH ANNUAL YEAR BOOK— PART X 703 



(Value of bams, !f2,000; use for one year at 10 per cent, $200.) 



(12) Taxes and insurance paid on personal property should be distri- 

 buted to the proper accounts. All land taxes are charged to the real estate 

 account and distributed as part of the "Use of land and buildings." 



(13) All the hours and minutes of man labor on each enterprise, includ- 

 ing- the chores, should be added up, these totals being brought together and 

 the sum of the man hours on all enterprises found. 



(14) The total cost of man labor for the year should be found. 



(15) The rate per hour should be found by dividing the total cost of 

 man labor by the total hours of man labor. 



(16) The total number of hours found against each enterprise in the 

 work record should be transferred to the same account.s in the financial rec- 

 ord, multiplying each total by the rate to obtain the cost. These items 

 should be credited to labor in the financial record book. "When this is 

 completed, the labor account should balance within a few dollars, though 

 if the rate per hour were carried out in full to the last decimal place the 

 account would balance. A difference of 1 mill in the rate for 6,000 hours 

 would make a difference of $6 in the final results, and a difference of one- 

 tenth of a mill would make a difference of 60 cents. This difference or 

 error is not important enough to consider. It may be carried to the "Loss 

 and gain" account, or it may be added to or substracted from one of the 

 larger items of labor, in accordance with w^hether it is a loss or a gain. 



(17) All the hours and minutes of horse labor spent on each enterprise, 

 including any horse labor on chores, should be added up, these totals being 

 brought together and the sum of the horse hours on all enterprises found, 

 just as was done for man labor. 



(18) To find the total cost of horse labor, first the horse inventories 

 shopld be entered, the first inventory as a charge and the second as a 

 credit to the horses. Then the horses should be charged with interest on 

 the average of the two inventories at the current rate in the section and 

 the interest account credited. The ordinary rate charge in most parts of 

 the United States is 5 or 6 per cent on the investment. 



(19) The sum of each side of the horse account should be found. The 

 sum of the credits should be subtracted from the sum of the charges and 

 the difference will be the net cost of horse labor for the year. No charge 

 is made against horses for the use of the harness and other horse equip- 

 ment, all these costs being charged against the various enterprises in the 

 machinery charge, as hereafter explained, on the basis of horse hours. 



(20) The rate per hour of horse labor should be found by dividing the 

 total cost by the total hours. The figure thus obtained is the rate per 

 hour. 



(21) The total number of horse hours found against each enterprise in 

 the work record should be transferred to the same accounts in the finan- 

 cial record, multiplying each total by the rate to obtain the cost. These 

 items should be credited to the horse accounts in the financial record book. 

 When this is completed, the horse account should balance within a few 

 dollars. The reason for the failure to balance is the same as that already 



