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Caterpillar #174 Performance Handbook Edition 44 degree of accuracy what a machine will cost per hour to value plus the other costs of owning the equipment

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Determining Loaded Per Hour Shop Costs Determining a loaded per hour shop cost is simply dividing the number of quot billing hours quot that you can manage in a year into your yearly expenses The billing hours can t be 40 hours per week because you need to factor in lost time for administrative work shop cleanup holidays and other non productive time

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The three year LTD cost would be $181 500 which would buy 6 000 hours of work at an average LTD cost of $ per hour In the eight year model LTD cost would come to $420 000 the LTD hours worked would be 15 100 and the hourly LTD cost per hour would be $ per hour The last column of the Cost Models table shows how the LTD cost per hour decreases to a minimum of $ per hour

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