98 MANAGEMENT OF DAIRY PLANTS 



productive labor required for the manufacturing and marketing 

 of $2.00 worth of butter is equivalent to the labor required for j 

 manufacturing and marketing $1.00 worth of ice cream and that 

 $1.00 worth of cream requires the same amount of nonproduc- 

 tive labor as $2.00 worth of ice cream. In that case the figures 

 by which to proportion the nonproductive labor in the above 

 problem are as follows: 



Butter department pays $115 X - = $82.14. 



14,000 



Ice cream department pays $115 X : - = $16.43. 



14,000 



Sweet cream department pays $115 X - - = $16.43. 



14,000 



No definite rules can be offered by which to make the proper 

 distribution of nonproductive labor, as that is governed largely 

 by the nature of the business as well as by local conditions, but 

 the manager should make a thorough study of the problem and ; 

 place the cost as nearly as possible where it belongs. If he does j 

 not do this the statements in reference to cost of the depart-] 

 ments will be misleading. 



When proportioning the cost of labor at the close of the 

 month a permanent record should be preserved giving the] 

 monthly cost of direct and indirect or proportionate labor 

 (Form IV). 



