18 
BULLETIN 1261, U. S. DEPARTMENT OE AGRICULTURE. 
In Tables 3, 4, and 5 there is an apparent discrepancy in some 
cases between the actual sum of the items and the total shown. 
For example, labor and material for association No. 7 (Table 3) 
in 1920 are given as 17 cents and 35.5 cents, respectively, while the 
total shown is 52.4 cents instead of 52.5 cents, "in the preparation 
of the tables all items were calculated to two or more decimal places. 
Expressed in two decimals the figures given above are labor 16.97 
cents, material 35.45+ cents, total 52.42 cents. 
AVERAGE EXPENSE. 
The cost of the packing-house operations is readily divided into 
two main groups: Direct expense, or the material and labor which are 
used directly in the packing and grading of each box of fruit; and 
indirect expense, or the general overhead expense which goes on 
to a large extent with little relation to the amount of fruit being 
packed. Figure 5 and Table 5 show the average packing-house 
expense of a group of selected orange and lemon associations from 
1917 to 1921. The detailed expense of the associations included in 
this study is shown in Tables 3 and 4. The average expense shown 
in Figure 5 was verified by comparison with the records of several 
associations from which detailed figures were not secured. For that 
reason it is believed to be a representative average for the period of 
all associations affiliated in the exchange. Over the 5-year period 
1917-1921, inclusive, direct expense on the average made 78 per cent 
of all packing-house expense for both oranges and lemons. While 
the proportions between direct and indirect expense were the same 
for lemons and oranges, direct labor and material per box of lemons 
cost on the average 70 cents, compared with 43 cents for a box of 
oranges. Indirect expense was also greater in approximately the 
same ratio, so that the average of all expense connected with the 
preparation of a box of lemons for market was 90 cents, while for 
oranges it was 55 cents. 
Table 5. — Average annual packing-house expense (in cents per packed box) of a 
group of representative orange and lemon associations, 1917-1921. 
Season ending — 
Average annual 
shipments. 
Packing 
material. 
Labor. 
Indirect 
expense. 
Total packing- 
house expense. 
Or- 
anges. 
Lem- 
ons. 
Or- 
anges. 
Lem- 
ons. 
Or- 
anges. 
Lem- 
ons. 
Or- 
anges. 
Lem- 
ons. 
Or- 
anges. 
Lem- 
ons. 
1917 
1918 
Boxes. 
224, 965 
81, 9C0 
185, 8S6 
164, 387 
228, 236 
Boxes. 
102, 040 
67, 477 
lit',. (ISS 
105, 998 
139, 328 
Cents. 
19. 96 
21.93 
27.27 
34.16 
47.77 
Cents. 
24.34 
26.24 
32.55 
36.72 
51.29 
Cents. 
9.62 
10.72 
12.04 
14.55 
15.57 
Cents. 
28.41 
29.27 
35.97 
43.34 
43.01 
Cents. 
7.60 
16.99 
10.29 
13.83 
11.43 
Cents. 
18.19 
22. 03 
17.61 
20.84 
18.18 
Cents. 
37. 19 
49.65 
49.61 
62. 55 
74.76 
Cents. 
70.95 
77. 53 
1919 
86. 13 
1920 
100. 90 
1921 
112.48 
5-year average. 
177, 077 
106, 186 
30.22 
34.23 
12.5 
36.00 
12.03 
19.37 
54.75 
89.60 
Direct expense consists of two items: (1) Packing material, which 
includes box shook, wraps, labels, strapping, chip board.' nails, and 
miscellaneous supplies, and (2) direct labor, or the labor applicable 
directly to the actual receiving, packing, grading, or other handling 
3 Chip hoard is the name given to the pasteboard placed at the ends and center of the box to prevent 
injury to the fruit. 
