The Machine Hour Rate Method of Distribution of Factory Indirect Expense: A Thesis (Classic Reprint) - Hardcover

Guy Foote Wetzel

Hardcover

ISBN 10: 0656924454 ISBN 13: 9780656924455

Publisher: Forgotten Books, 2018

Synopsis

Discover how factories allocate indirect costs and price products using the machine-hour-rate method.

This nonfiction guide explains why cost systems matter for factory success. It covers the three main manufacturing cost elements—labor, material, and indirect expense—and why accurate costing influences selling prices. The text then focuses on the machine-hour-rate approach, showing how to treat each production center as a charged unit and how to include administration, depreciation, and building costs in the rate. It emphasizes careful analysis of conditions in a plant and the practical steps needed to calculate and apply these rates.

Readers will see how to gather data, assign costs to each machine or center, and distribute expenses across the production flow. The material illustrates the roles of time cards, requisitions, and shop records in building a reliable cost picture, with attention to real-world challenges like power, steam, and building charges. The goal is to produce a fair, usable cost per unit that reflects actual resource use and supports better management decisions.

• Definition and structure of factory costs, including labor, material, and burden.
• How the machine-hour-rate method assigns overhead to production centers and products.
• What data and records are needed to compute machine rates, including power, depreciation, and building charges.
• Practical steps to implement the method and monitor its accuracy over time.

Ideal for readers interested in cost accounting, industrial engineering, and factory management seeking a clear, real‑world approach to pricing and cost control.

Edition details

• Publisher: Forgotten Books
• Publication date: 2018
• Language: English
• ISBN 10: 0656924454
• ISBN 13: 9780656924455
• Binding: Hardcover
• Number of pages: 200