APPENDIX 



Methods of Standardizing Individual Cost Items 



Wages 



Travel time was basically rlctormined hy route mileage (Figure I). 

 A.S route mileage increases, the average rate of speed rises to a maxi- 

 mum level. ^ However, hours in travel were adjusted for the nundier of 

 men accompanying trucks and for in-field travel via passenger vehicles. 

 For 1 and 2 truck models, three men were assume<l to be carried per 

 truck, including drivers. For other models the total number of men 

 carried on trucks was as follows: 3 trucks. 7.5; 4 trucks. 9.0; 5-10 trucks, 

 10 men; 11 trucks, 11 men; 12 trucks. 12 men. 



In-field travel time per crew member above those carried on trucks 

 varied from 0.7 of truck travel time with one man to 0.4 with 8 men, 

 0.3 with 13. and 0.2 at 55 and over. 



The number of foremen was as follows: 1 with 6-10 in the crew; 2 

 with 11-22; 3 with 23-33: 4 with 34-44; 5 with 45-55: 6 with 56-66: and 

 7 with 67-77. The salaries of foremen were related to volume, and their 

 hours were limited to 1976 (247 days of 8 hours each) for purposes of 

 calculating overtime wages. With volume below 5 million pounds annual- 

 ly, the annual salary of a foreman was $4,000: with volume up to 20 

 million pounds annually, §4.500. In larger operations some were valued 

 at $5,000 and others at $4,500. 



Where part of the crew travelled in passenger vehicles, the cost of 

 operating passenger vehicles was included at 7 cents per mile. It was 

 assumed each vehicle could haul up to 8 men. The first such vcdiicle 

 operated was assumed to travel the same distance as trucks. Thereafter, 

 the distance travelled per passenger vehicle ranged from 0.6 the truck 

 travel distance for the second vehicle to 0.4 per vehicle for the second 

 and third, to 0.2 per vehicle when 7 additional vehicles above the first 

 were required. 



Work time involved in loading and related functions were combined 

 in these analyses. The levels of output per man hour were determined 

 by reference to Figure IT. These relationships probably contain some 

 inefficiencies subject to reduction through detailed time-and-motion 

 study or improvement of farm facilities. These data were derived from 

 information used in Figure 2, with estimated travel time, as established 

 in Figure I, being substracted from the asrgregate hours of labor. 



Wage rates used were $1.50 per hour for drivers and $1.20 per hour 

 for helpers, plus 5 percent fringe benefits. Time-and-a-half was paid for 

 work by the crew beyond 1976 hours (247 days of 8 hours each) per 

 year. Figure III shows the relationship of volume and crew size, as 

 determined from survey records. 



1 Travel lime for routes of 60 miles round trip or less determined by reference to: 

 N. H. Sta. Bui. 427, op. oil.. Fig. 9, p. 37. This fipure derived from records on de- 

 liveries to farms by grain trucks traveling over New England routes. Above 60 miles, 

 a constant speed of 46.2 miles per hour was used. 



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