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delivering brick where and when wanted. Past experience is not the basis for valuing brick and various other materials.

Valuation of Labor Units

Placing values on labor to be performed requires an accurate knowledge of man-production in the past, i.e., how many brick per man were laid under different conditions on prior contracts. Knowledge of the hourly rates of wages to be paid to workmen in the locality where work will be done is also requisite. This information regarding production and hourly rates must be correct. If the information of past experience on which the contractor relies rates man-production too high, the labor values he uses when preparing bids for new work will be too low, and fulfilment of the contract may involve a cash loss. If, on the other hand, production is rated too low, his estimated cost may be so high as to hinder his securing contracts for new work.

A cost system may furnish a contractor with correct information at the completion of an operation as to what his actual unit labor costs have been and thereby meet the requirement of assisting him in intelligently preparing estimates for new work. It must go farther. He must know that work in progress is being conducted economically and within his estimated cost. The profit he contemplated making when signing the contract must be conserved.

Analysis of Labor Charges

The analysis of labor charges and its distribution to cost subdivisions sometimes originates with reports prepared by each foreman (Form 31).

These reports are prepared daily and show the feature of work on which the men under each foreman were engaged, the cost symbol, and the quantity of work produced. The reports also give the number of men employed and the total number

of hours engaged on the work, divided into excess time and actual time. If a mechanic is entitled to time and a half for overtime, he would receive 11⁄2 hour's pay for working from 6 to 7 P. M. His actual working time is the one hour between 6 and 7 and his excess time is the additional one-half hour paid him.

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The purpose of this separation is to determine properly the actual man-production per day. A mechanic's output does not increase 50% simply because he is paid 11⁄2 hour's time for one hour's actual labor. He does no more work in the hour between 6 and 7 P.M., for which he receives 11⁄2 hour's time, than he performs between 2 and 3 P.M., for which he is paid only one hour's time. The excess time is part of the cost of the

work and has a decided effect upon unit costs and actual cash gain or loss, but has no bearing in arriving at the output per day. The earned time of workmen, as given on the reports submitted by foremen, is compared with that credited to them on the timekeeper's checking card. Daily summaries of the foremen's reports are made, grouping together the hours earned on each feature of work by all workmen of the same trade. These summaries provide columns for each work day and for a total. The quantities of work performed are recorded and accumulated totals kept. Posting to these daily labor summaries must be done each day. At the end of the payroll period, the columns are cross-footed, and the total hours spent on each feature of work and its cost ascertained. The daily labor summary and the payroll are prepared so as to group the earnings of each class of workmen. It is not difficult to reconcile the total cost shown by the labor summary with the earned wages appearing on the payrolls, if the number of hours entered in each day's column on the payroll is footed and compared daily with the total hours appearing on the summary.

At the end of each payroll period, the totals shown by the daily labor summaries are transferred to a summary sheet for the period. This sheet can be any three-column sheet with space for a description of the work. The grouping brings together the cost of all trades working on any particular feature of the work. This total cost is then posted to each feature in either the Mechanics or Helpers column of the ledger sheet when posting the purchase register.

Another method for distributing labor to cost subdivisions. is to use a work sheet similar to Form 32. The workmen's numbers are indicated at the left. The time spent by each on the different classifications of work is indicated in the proper column. "ST" means straight time and "OT" overtime.

The results shown by this analysis form are transferred.

to a daily record. This record provides columns successively for (1) Cost Symbol, (2) Feature of Work, (3) Name of Trade (masons, carpenters, etc.), (4) Total Hours, Rate, and Amount. These daily summaries are then posted to weekly summaries and to the cost ledgers.

Daily labor summaries can be eliminated when only a check of unit production at the end of each payroll period is required. When a daily check is used, an analysis showing the

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number of hours workmen were engaged on each feature of the work must be made. It can as readily be made a permanent record as in a rough memorandum form.

Daily Production

Daily reports prepared by the foreman should be analyzed and studied each day to determine and compare the man-production of the different gangs of similar workmen. Low production should be immediately investigated. The ascertainment of the daily man-production per man-day is determined by dividing the actual number of hours of employment into

R. C. Wieboldt Company, Contractors

United States Mail Terminal, Chicago, Illinois

J. D'Esposito, Chief Engineer
Chicago Union Station,

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