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NEC BN-58 05 



Figure 21. — Pallet boxes of apples being placed in storage in one of 



the commercial storages. 



Hourly wage rates used in these comparisons were based on $1.50 for all 

 labor, except forklift truck operators, who received $1.75 per hour. In the 

 cost comparisons picking was computed at 12<(; per field or loose standard box, 



Equipment 



Equipment requirements are based on the use time associated with the 

 various operations in connection with handling fruit from the orchard to and 

 through the storage and packinghouse. These machine inputs are shown in 

 table 4 as equipment times and reflect industry averages. 



The costs of using this equipment include both ownership and operation 

 costs. Ownership costs for the various pieces of equipment consisted of 

 depreciation, interest, insurance, and taxes. For simplicity, depreciation 

 was formulated on a straight line basis; therefore, the total cost of the 

 equipment was divided by its expected life. Interest was based on 6 percent 

 of one-half the initial cost of the materials-handling equipment. Tax rates 

 were computed on a basis of 46 mills based on 22 percent of the original 

 purchase price. This mill rate was derived from taking an average of the 

 municipal and rural tax levies for Yakima County. Insurance rates were 

 obtained from published rates for this general area. 



