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TABLE 3. GUIDE FOR ESTIMATING HOURLY REPAIR RESERVE

FOR VARIOUS TYPES OF CONSTRUCTION EQUIPMENT

INSTRUCTIONS - To estimate hourly repair cost, selece the appropriate mu'tiplier factor from the table below and apply it in the following formula:

Repair Factor X (Delivered Price - Tires) - Estimated Hourly Repair Reserve

1000

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TABLE 4. ESTIMATING HOURLY OWNING AND OPERATING

COSTS OF A TRACK-TYPE TRACTOR

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*55.150

221 (F) 1000

1000 1000 8. TCHAL HOURLY OWNING COSTS

$2.23

(G) OPERATING COSTS

Unit Price Consumption 9. Fue! 1060a!. *2. Osal/

1.12_ (H)
10. Lubricants, shers, Grease

Unit Price x Consumption
Engine $1.00 gel, 04

04
Transmission 1.00 gel 0.

03
Final Drives
02

02
Hydri whes 1.00 gal .03

.03
Grene
20 05

.01
Filters

08

Sub Total 0.21
11. Tires Replacement Cost

Estimated Life in Hours
Cost

(K)
Life
12. Repairs Factor DeiPriceless Tres

1000
09 55.150

$4 96 IL)
1000
1000

1000
13. Special Items:

Tips 13 € 2100) - 150 hrs. 0.42
Shand Protectors (

34000) 14.00.27 0 69
14. TOTAL HOUALY OPERATING COSTS

INI
15. Operator's Hourly Wage
16.TOTAL HOURLY ONNING AND
OPERATING COSTS

$20.21 0)
Price shown is example only Plese insert purchase price for your machine to compute you!
hourly owning and operating cos!
..Example cokulation only 3

(M)

Source: Caterpillar Tractor Co.

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TABLE 4
(continued)

ESTIMATING HOURLY OWNING AND
OPERATING COSTS OF A TRACK-TYPE

TRACTOR

Assunie 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:

Interest

8% Insurance 3% Taxes

13% 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.

2%

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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/litre.).

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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:

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