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Job Costing vs. Costing at Standard
Determining the cost of a job can be done for single activities or for repetitive work tasks.  The costs of repetitive tasks are calculated using a method called "Costing at Standard".

Job Costing
When job costing is used, the majority of the costs are specific to this one activity, e.g., repairing a septic tank or a large special event. Clerically intensive, this type of costing requires detailing all direct and indirect expenses.    Once done, it can be used to establish costing at standard and for non-repetitive jobs, i.e., one-ups.
 
Costing at Standard
Used to cost out a job based upon one or two measurements, e.g., hours or miles.  Jobs are repetitive and have little significant difference. Most companies use hours as a measure and relate the cost per hour for the job as $/hr. For a portable toilet company, a key measure is $/hr for utility driver or $/hr for service.  
 
The cost of the utility driver typically ranges from $50.00 to $125.00 per hour depending upon the age and type of equipment used.  To calculate standard cost per hour:
  1. Get total hours worked by all service drivers in 1 year or month
  2. Get total expenses for 1 year or month for your company. Remember to use the depreciated costs for capital items, i.e., trucks, units. Trucks costs $100,000.00 and last 5 years, so the cost per year is $20,000.00. At the end of 5 years, the book value of the truck is zero. Costs that are shared between special events and regular service should be proportionally prorated.
  3. Loaded cost per hour is total expenses / total service hours
Companies recalculate the Standard cost per hour at least once a year. Companies that have swings in costs may do it quarterly.
 
The reason for using the service hours is because it is the revenue generating activity, i.e., cleaning the unit(s).
 
Most special event costs are in the sales coordination and unit delivery and removal.  Again, costing at standard can be applied by using time to deliver and pick up a unit(s) in terms of hours, rule-of-thumb is 1 hour plus 15 minutes for each additional unit, times 2 for the delivery and pickup.  A one unit special event would be 2 hours of a utility driver. A 10 unit event would be 3.5 hours (1 plus 2.5 for the 10 units), for each activity, totaling 7  hours.
 
A utility driver's loaded rate is usually higher because there is more equipment, i.e., trailers and higher one-time setup resources, i.e., loading and unloading units.  A rule of thumb of 50% higher costs per hour usually is appropriate.

 

Job Offering

PORTALET COMPANY IN  BEAUTIFUL SOUTHWEST FLORIDA SEEKING OFFICE HELP. FULL TIME, MUST BE EXPERIENCED IN USING  "TAC" SOFTWARE.  http;//www.AlliedRecyclingFl.com
 
Please send resume to Allied Recycling Inc.  at email ar3770@aol.com attention Linn or call 239.334.1191239.334.1191

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Clear Computing will be happy to list your job offerings here.  Just send the job description and contact information in an email to sales@clearcomputing.com and we'll put it in our next newsletter.
 
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on Our Website
Did you know you can look up your account information and pay your invoices  
on the Clear Computing website?
 
Go to our live support at http://www.clearcomputing.com/ and get your login and password. Then click on green button "My Account" to see your information. 


If you're a TAC Online user, you can put a Customer Portal on your website and give your customers access to their account history and service information.  Your customers can even pay bills right from your website.

Contact our office for more information.

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We are always looking for real life stories and comments on how TAC Online has been a benefit to you and your business. 

Write a review for TAC OnLine
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Your time to write a review is appreciated.    :)  

Pizza
A college pizza delivery boy arrived at the house of Mr.Smith. He delivered the pizza to his trailer. After giving it to him, Mr. Smith asked: "What is the usual tip?" 

"Well," replied the youth, "this is my first trip here, but the other guys say if I get a quarter out of you, I'll be doing great." 

"Is that so?" snorted Mr. Smith. "Well, just to show them how wrong they are, here's five dollars." 

"Thanks," replied the youth, "I'll put this in my school fund." 

"What are you studying in school?" asked Larry. 

The lad smiled and said: "Applied psychology."
Funny Cartoon of the Week