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TABLE 3. GUIDE FOR ESTIMATING HOURLY REPAIR RESERVE

FOR VARIOUS TYPES OF CONSTRUCTION EQUIPMENT

INSTRUCTIONS - To estimate hourly repair cost, select the appropriate multiplier factor from the table below and apply it in the following formula: Repair Factor X (Delivered Price - Tires) Estimated Hourly Repair Reserve

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TABLE 4
(continued)

ESTIMATING HOURLY OWNING AND
OPERATING COSTS OF A TRACK-TYPE
TRACTOR

Assume a power shift track-type tractor with straight Bulldozer, Hydraulic Control, Tilt Cylinder and Ripper and equipped for extreme service is sold to a contractor for $55,150, delivered price at job site.

Application will be production dozing of bank gravel. Some ripping will be required to loosen material.

To Determine Net Depreciation Value:

Enter delivered price, $55,150, in space (A). Since the machine being considered is a track-type tractor, no tires are involved. This particular owner's usual practice is to depreciate machine to zero value. Therefore, resale or trade-in value, space (C), is also left blank. Net depreciation value is then equal to full delivered price, $55,150. Enter this figure in space (D).

Depreciation

Refer to table

Intended use, production dozing of gravel, indicates a Zone B application. Indicated depreciation period is 10,000 hours. Knowledge of owner's depreciation practices and local conditions affirms this figure.

Divide Net Depreciation Value from space (D), $55,150, by Depreciation Period, 10,000 hours, and enter result, $5.52 in space (E).

Interest, Insurance, Taxes

Refer to Curves on P. 25. In this example, local rates are assumed as follows:

Owner plans to work machine about 2000 hours per year. Enter chart on P. 25 at 13%. Move horizontally to 2000 hrs./yr. line and vertically down to lower axis. Applicable factor is .04.

.04 x $55,150

Interest, Insurance, Taxes:

=3 = $2.21

1000

Enter this figure in space (F).

Items 1 and 2 can now be added and the result, $7.73,

entered in space (G), Total Owning Costs.

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TABLE 4
(continued)

Fuel

Refer to track-type tractor fuel consumption tables. The intended application, production dozing, indicates a medium load factor. Assume that the estimated fuel consumption from the table is 7.0 U.S. gal./hr. (26.5 litre./hr.). Cost of fuel in this locality is $0.16/U.S. gal. ($0.042/1itre.).

For these items, you can use the consumption tables and the filter cost calculator for a detailed estimate. Assume an approximate hourly cost for lubricants, filters and grease for this tractor of $0.21. Enter this figure in space (J).

Tires

Refer to Guide for Estimating Repair Reserve. In determining the depreciation period, we established the intended use of the machine as a Zone B application. For this application for track-type tractors, the Guide indicates a Repair Factor of 0.09. To find Estimated Hourly Repair Reserve: