Fig. 10. Rack Used
for Sorting Requisitions
43. Labor Costs. From the time-cards or work orders, labor costs are compiled both for separate jobs and to show totals by departments and for the entire plant. The compilation showing totals is made for the purpose of checking the pay-roll—to prove that all labor paid for has been charged to factory operations in some form.
The time-cards should first be sorted according to departments, then re-sorted to separate the direct production, indirect production, repair, and construction labor of each department or shop. The cards representing the different classes should be footed on an adding machine, and the department totals compared with the pay-roll records. Daily comparisons should be the positive rule in order that discrepancies may be adjusted while the matter is fresh. On no account should the adjustment of discrepancies be omitted—labor reports from the factory must agree with the pay-roll. Cards showing the class of work done must be turned in for every man.
The tabulation of labor costs is really made for the purpose of distribution; that labor charges may be distributed to the proper accounts. The nature of the tabulation will, therefore, depend largely on the class of business for which it is to be used. In some lines, costs must be distributed by both departments and classes of labor; in others, by classes of labor only; sometimes, by classes of product—though this will usually be covered in the departmental distribution.
A form intended for the distribution of labor costs in a single department is shown in Fig. 12. This form is in loose leaf and is filed in a binder, the sheets being arranged in numerical or alphabetical order representing the departments. If the cost and general accounting departments are separated, this form should be in duplicate; otherwise, one copy is sufficient.
In the body of the form, distribution columns are provided for the different classes of labor—direct, indirect, repair, and construction, with a column for any special classification that may be needed.
Fig. 11. Monthly Statement of Supplies Issued