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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
TABLE 4. ESTIMATING HOURLY OWNING AND OPERATING
COSTS OF A TRACK-TYPE TRACTOR
221 (F) 1000
1000 1000 8. TCHAL HOURLY OWNING COSTS
(G) OPERATING COSTS
Unit Price Consumption 9. Fue! 1060a!. *2. Osal/
Unit Price x Consumption
Sub Total 0.21
Estimated Life in Hours
$4 96 IL)
Tips 13 € 2100) - 150 hrs. 0.42
34000) 14.00.27 0 69
Source: Caterpillar Tractor Co.
ESTIMATING HOURLY OWNING AND
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).
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:
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.
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.
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.).
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).
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: