Standard cost finding practice for steel foundries

Bibliographic data

Monograph

Identifikator:: 176071013X

URN:: urn:nbn:de:zbw-retromon-140159

Document type:: Monograph

Title:: Standard cost finding practice for steel foundries

Place of publication:: [Pittsburgh]

Publisher:: Steel Founders' Society of America

Year of publication:: 1927

Scope:: 26 Seiten

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Cost of steel and overhead rates for individual castings

Collection:: Economics Books

P = value of recovered scrap in dollars per net ton of scrap. This price of scrap is item 3 on the average cost summary illustrated on page 18. Y = yield of good castings in percentage of metal charged into the furnace. This is calculated from the formula for yield given previously. The easiest and most convenient way to obtain the cost of steel for individual castings is to construct a table each month based on market prices of metals and showing the cost of steel for various yields. After calculating the yield for the casting whose cost is to be determined, reference to such a table will give the cost of steel per net ton of good castings. This table is constructed by using the formula given above. The follow- ing illustrates the use of the formula for constructing the table of steel costs: M in the formula, which is item 2 in the cost summary on page 18, is $28.14 L, in the formula, which is item 40 in the cost summary on page 19, 1s 10.0% P in the formula, which is item 3 in the cost summary on page 18, is $13.00 } 100 X 28.14) — [13 X (100 — 10)] Cost of steel per net ton of good castings = (106 —+ 13. 1644 Cost of steel per net ton of good castings == ——— 4 13. By substituting values for Y (yield) from 21 to 80, the following table is the result: COST OF STEEL PER NET TON OF GOOD CASTINGS FOR DIFFERENT YIELDS Yield 21 Cost of Steel ner Net Ton 91.30 *1.75 24.50 $0.50 16.2. 72.90 75 0 iN 1 6. RO.6G0 3 Cost of Steel ' Yield | per Net Ton 26 dj 58.70 57.50 56.30 85.50 t r 0.91) Yield 1 s Cost cf Steel per Net Ton 15.30. 14.60 14.10 £3.40 12.90 2.40 90 40 0. € $ i : i Cost of Steel Yield per Net Ton 66 F 37.90 37.60 37.20 36.80 26.50 56.20 5.20 5.50 ER) 34.90 34.70 34.40 BH 34.10 33.80 23.60 ae The above procedure is for the regular carbon steel. The cost of allov steel is obtained by adding to he cost of carbon steel. the additional cost of the allovs used. (b) Overhead Rates The method of establishing overhead rates and applying them when determining the costs of individ- ual castings, should be standardized throughout the steel foundry industry. Uniform methods to be used by all the members of the industry are very essential if vast differences in costs caused bv the use of different cost inding methods are to be prevented. There are five main overhead rates to be used for calculating the cost of an individual casting, in addi- don to the cost of steel mentioned in the foregoing. These are: molding overhead, core overhead. cleaning overhead. annealing cost. and general overhead.

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