EP 1110-1-8
(Vol. 7)
31 July 03
TOTAL HOURLY RATE CALCULATION FOR OVERAGE EQUIPMENT
EXAMPLE
Assume the following set of given information for the rate calculation example:
1.
The unit of equipment is not listed in table 2-1.
2.
The equipment is contractor owned.
3.
Data for the unit in question:
a.
Clark front-end wheel loader
b.
Model 125C, 4WD, 4 CY capacity
c.
Serial number indicates year of manufacture = 1986
d.
Actual purchase price in 1986 = 8,280
(includes all regional discounts, sales tax and freight)
e.
Horsepower is 203 hp (fuel is Diesel off-road)
f.
Drive tire (DT) size = 23.50 x 25, 16 ply, L-3
DT cost (2003) = 4 tires x
||content||
,769.00 = ,076.00
g.
Weight = 42,200 lbs
4.
Table 3-1, Age Adjustment Factors for Ownership Costs:
a.
The category L40, subcategory 0.11 (wheel loaders < 225 hp)
b.
The year corresponding to the last age adjustment factor = 1997
5.
Adjust the actual purchase price:
a.
Economic Indexes from appendix E (wheel loaders EK = 45)
(1) For 1997 (first year of economic life), the economic index = 5303
(2) For 1986 (year of manufacture), the economic index = 3991
b.
Purchase price [total equipment value (TEV)] indexed to 1997 (first year of
economic life): (Purchase price includes discount, sales tax, and freight for
this region).
(5,303/3,991) x 8,280 = 3,600 (=1997 purchase price)
6.
Hourly rate is computed as follows in accordance with figure 2-1, Equipment
Rate Computation Worksheet.
Figure 3-1. Total Hourly Rate Calculation for Overage Equipment
3-20
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