THE SHOP-ORDER SYSTEM OF ACCOUNTS. 341 



This will give the men about ninety per cent, of the piece price, 

 which, when divided among them, gives, say, an average per man 

 of $1.50 per day. Supposing the firm pays for mounting our 

 stove $1.25, then it takes 



- of $1.25 = 0.75 day's work to mount that stove.* 



The contractor's estimated profit should be charged to the 

 general expense of mounting (S. O., No. 4), as he is virtually a 

 foreman under a specially strong incentive to make his men 

 work. It may seem rather inquisitorial to require the contractor 

 to expose his pay roll ; but this is justified by the circumstance 

 that the foundry furnishes the facilities which are occupied, 

 worn, and wasted more nearly in proportion to the number of 

 men employed than to any other quantity. 



Now, suppose the contractor keeps his profits to himself. 

 We merge him with the men, and knowing, for police purposes 

 if for no others, how many men are employed per day in a given 

 time, the quotient of the contractor's gross receipts for that 

 time, divided by the number of days' work done in his depart- 

 ment during that time, gives the average cost of a day's work, 

 which, divided into the piece price per stove, gives the day's 

 work on that stove for mounting. 



We can now sum up the cost of mounting per stove as 

 follows : 



Contract price $i 25 



$0.75 day's work x $0.90 (cost factor, p. 25) 67 



Material, per material cards, or estimated from list of material 



as shown by drawings I 10 



Total per stove $3 02 



Total for 521 stoves $1,574 oo 



Omitting ornaments, nickel work, tiles, crating, etc., all of 

 which can be charged directly, we may sum up as follows : 



* (Proof. The contractor gets 521 x $1.25 = $65125 



Of which the men get 90 per cent., or 586 12 



Which, at $1.50 per day = 390.75 days' work, 



Or for 521 stoves 0.75 day's work per stove.) 



