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This study of milk delivery operations was undertaken to develop labor relatives for different packages and to compare unit costs of delivery computed by using these relatives. A principal issue was whether variable direct labor was a better measure than total direct labor for allocating costs to various packages. Delivery operations on milk routes were timed to determine the amount of labor used in performing various functions in serving wholesale customers. This route information and the financial information on dealer delivery operations comprised the data base for the analyses.
Life Sciences and Agriculture Experiment Station
Flanders, N.E., and H.B. Metzger. 1977. Delivery costs per package on wholesale milk routes: A comparison of two methods of cost allocation. Life Sciences and Agriculture Experiment Station Technical Bulletin 87.