THE SHOP-ORDER SYSTEM OF ACCOUNTS. 339 



If we double the number of men employed, on direct work 



only, then 



C = about $0.80. 



If we discharge half the force, 



Ci = about $1.23, etc. 



In the melting department, as the cost of iron in good castings 

 depends so much more upon the output than upon the number 

 of men employed, I disregard the men and divide the cost by 

 the weight of good castings produced, say, 6,000,000 Ibs. ; this 

 gives a cost per pound (not for melted iron, as it is often 

 called, but for good castings) of 1.288 cents per pound; and 

 this is taken as the cost factor of that department. 



COST OF A STOVE. 



Now, suppose that we have finished an order calling for 500 

 stoves of a special size and pattern, and that from overrunning 

 or by direction 521 happen to be made with a lot of spare 

 parts estimated to be worth, say, $200. Also suppose that the 

 patterns are estimated to be worth half cost for future work. 

 We may establish the cost per department as follows : 



1. Patterns. 



These have all been made by day labor, charged to the order 

 from day to day. So has the material. We find that they 

 have cost as follows : 



Labor, direct, at average of $2.75 $1,500 oo 



Cost of facilities, 545 days' work at 82 cents 447 oo 



Value of material, estimated 513 oo 



Cost of patterns $2,46000 



2. Molding. 



If this is done by the day and an account be kept, as with the 

 patterns, the same course is followed, except that no special 

 charge is made for materials, all of which comes out of the cost 

 factor. But since in stove foundries molders work almost alto- 

 gether by the piece, and owing to the great number of different 

 parts of different stoves which they are apt to mold at the 



