412 AGRICULTURAL ECONOMICS 



13. All the hours and minutes of man labor on each enterprise, including 

 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 accounts in the financial 

 record, 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. 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 subtracted from 

 one of the larger items of labor. 



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 

 should 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 charged 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 equipment, 

 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 financial 

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

 should be credited to the horse account in the financial record book, and the 

 account balanced as in paragraph 16. 



22. To find the use cost of the machinery, the first machinery inventory 

 should be entered as a charge and the second as a credit to the machinery 

 account, then this account should be charged with interest on the average 

 of the two inventories, as directed for the horse account. The interest 

 account should be credited with the amount of this interest. 



23. The sum of each side of the machinery account should be found 

 and the credit total subtracted from the charge total, the same as for the 



