Canadian wood products industries . is often a wide differenceof opinion when figuring wastage. A similar system should be followed in the caseof all materials, including packing-paper and twine,and it should be remembered that these should al-ways be figured as material cost and not as expenses. Then in factory cost figuring, direct or productivelabor should be the basis, because labor is the onething that fluctuates the least, and this is the methodthat is acknowledged to be the most satisfactory. The next thing to do is to divide the factory costaccording to the several departments or stage
Canadian wood products industries . is often a wide differenceof opinion when figuring wastage. A similar system should be followed in the caseof all materials, including packing-paper and twine,and it should be remembered that these should al-ways be figured as material cost and not as expenses. Then in factory cost figuring, direct or productivelabor should be the basis, because labor is the onething that fluctuates the least, and this is the methodthat is acknowledged to be the most satisfactory. The next thing to do is to divide the factory costaccording to the several departments or stages ofmanufacture. In order to give a concrete example wewill suppose the following divisions: First, the Machine Department; Second, CabinetDepartment; Third, Finishing Department; Fourth,Assembly Department and Packing Department;Fifth, General. Wages in the packing room should beclassed as productive labor, the percentage on whichwill provide for the overhead expenses in that depart- Secretary Furniture Manufacturers Wm. Cawkell ment, the same as the other depart-ments as explained further on in thearticle. Some factories are not ableto allocate the packing wages to anyspecific job, in which case the wagesand overhead of this department areincluded in General Department. Having decided upon the depart-mental division of your factory, thenext is to ascertain the fixed charges,and to allocate them properly. Theyusually consist of: first, rent andtaxes; second, insurance on pro-perty and fixtures, on stock and onmachinery; third, depreciation onmachinery; fourth, coal, heat andlight. Some of these, such as rent,are charged according to space,others according to value. Thenthere are many points to be con-sidered when these charges are allot-ted, which must be dealt with by theaccountant putting in the deciding on the amount of these fixed charges thefigures for the previous years are, of course, availableas a basis. The first thing is to find the wages paid
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Keywords: ., bookcentury1900, bookdecade1910, bookidcanadianwood, bookyear1916
