232 FARM ACCOUNTING 



to apply on a great many farms. It is a convenient 

 to use because of the ease with which calculations can be 

 made from it. If one does not have occasion to doubt its 

 accuracy to a very great extent, it should be used on tin- 

 average farm. However, if one finds or knows that labor 

 on his farm costs more or less than that amount, he should 

 use the rate that represents the facts. 



When OIK- docs not know what rate represents tin* f 

 IM may find the rate after having determined tin- total num- 

 ber of hours in the yearly labor record. This is tin 1 ;ni 

 < Mi-responding to the 2850 hours of Illustration l_!. 

 total hours is divided into the total lal>r (<( ^t as - ; 

 on the debit side of Labor account. This result rives the 

 cost per hour for all work during the year. This hourly 

 rate is applied to the total hours of each of the farm ele- 

 ments in the same way as the 20-cent rate was applied in 

 Illustration 42. 



If the flat rate of 20 cents is used, it usually leaves a 

 balance in Labor account. Such balance is closed into 

 (Jci.cral F.xpense before dosing the latter. 



Horse Labor Record. The principles presented in con 

 nectiou with labor records are applicable practically with- 

 out change to horse labor records. In recording the num- 

 ber of hours worked each day, the horse is used as a unit 

 rather than the team. If a team works fi hours on Field 

 No. 1 on Mar. 1, the notation in the horse labor rerun 1 

 at the close of the day would show 1:2 in the proper j lace 

 under Field No. 1, opposite Mar. 1. This means 12 IK. is. 

 hours. The summary and journal entry are prepared in 

 he same way as shown for labor in Illustrations 41, 42 

 and 43. Horses are not charged with the value of their 

 work performed for hors 



In the journal entry, Horse account is credited with the 

 value of the horse labor. The cost per horse hour is cal- 

 culated on a basis of about one-half the cost of a man 



