Appendix B: COST ESTIMATING GUIDE

TM 38-260

APPENDIX B

COST ESTIMATING GUIDE

INSTRUCTIONS:

Divide machine tools into the following weight classifications:

a. Up to 3,999 lbs.

b. 4,000- 8,000 lbs. (3 ton class).

c. 8,001-16,000 lbs. (6 ton class).

d. 16,001-32,000 lbs. (12 ton class).

e. over 32,000 lbs.

2. To calculate the cost of layaway for machines under 4,000 lbs., you must first add all the weights together for the

items that fall in this weight class. This total weight should be divided by 4,000 lbs. If the result includes a decimal of .5 or

above it should be rounded up to the nearest whole number. If the decimal is below .5, it should be rounded down to the

nearest whole number. Add this whole number to the number of machines in the 3 ton weight class.

e.g

machine 1 +

machine 2 +

machine 3

machine 4

total weight

1200

3599

1380

3999

10,178 lbs.

total wt./4,000 lbs = number of machines in the 3 ton class.

10,178/4,000 = 2.54 - round to 3 and add to the 3 ton class.

3. To calculate the cost of layaway for machines over 32,000 lbs., you must add the weights together for all items that

fall over 32,000 lbs. This total weight should be divided by 24,000 lbs., the median weight for the 12 ton weight class. The

whole number portion of the quotient equals the number of equivalent 12 ton weight class items. Add this whole number

to the quantity of machines in 1d. Any remainder should be weight classed as applicable; if under 4,000 lbs., add one 3

ton machine to the quantity established in section 1b.

4. Total up the items for each weight class.

5. Select the series of layaway actions applicable to each weight class, i.e., flush, disconnect, load and brace, etc., page

6. For layaway actions in each weight class, multiply the work hours time the local commercial labor rate.

B-1