Announcement

Collapse
No announcement yet.

Determing average asphalt costs with use of labor and equipment.

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Determing average asphalt costs with use of labor and equipment.

    I have nearly 25 projects with a variety of SF of asphalt placed and tonnage. Each line item shares cost of Asphalt per ton, labor costs and equipment costs. I am tasked to figure average asphalt cost using the total costs that includes all materials, labor, and equipment. However even throwing out a low with one high line item, my average asphalt costs is nearly doubled from last months. Not sure what I am doing wrong. I figured if I totaled the $/SF and averaged those out, it would be a reasonable amount, but it seems to be excessive. For instance, I have a range of $6.11 per SF to $26.10 per SF. And removing the low and the high, I still come out as the average being nearly doubled from the last recorded average cost two months ago. Please assist.

  • #2
    As with most troubleshooting problems, it helps us help you if you show us what you are doing, or if you have privacy or disclosure concerns, an example of what you are doing that you believe is wrong.
    From what I understand:
    • you have about 25 projects that provide
    1. the area of asphalt placed,
    2. weight of asphalt placed,
    3. and total costs of asphalt per ton, materials, labor, and equipment
    • you are trying to derive the average cost of asphalt per ton,
    • and you are getting an average in excess of what you would expect from previous calculations
    The first thing I would ask is, have you tried to recalculate the averages from two months ago using this month's formula?
    If they are the same, then your formula is consistent and the problem lies outside of your department.
    If they are different, then there is something wrong with your formula and I would need to see the example of what you are doing.

    Comment


    • #3
      Here is a small representation I am working with. Unfortunately I do not have access or past records available. Please review below. My average cost including total cost is nearly double what pprevious employer stated. For intance, For Jun 18-$9.95, Aug 18-$9.66, Sep 18-$8.28. And for the month of October I am coming out with $16.33 Nearly doubled. I have even considered throwing out a high and low and it still remains nearly doubled. What I am doing may be correct, but when a number is out of reason in accordance to previous numbers, it catches my attention. Right or wrong, it may be what it is, but I want to make sure my inputed asphalt average cost is correct so my construction crews can use accurate information for the asphalt average cost that includes materials, labor and equipment. Thanks for your assistance. I do appreciate it. It means alot you taking time and resources to assist.
      Repair Utility Cut Size Activity Sheet Tonnage Asphalt Cost Manpower Equipment Cost Account Number SF L W $/SF $/Ton SY Inches of Asphalt
      11/19/2018 11x9 3.22 $ 202.86 $ 360.48 $ 583.83 $ 1,147.17 510-8020-441.43-71 99 11 9 $11.59 $63.00 11 5.23
      11/20/2018 21x5 4 $ 252.00 $ 576.76 $ 916.33 $ 1,745.09 510-8020-441.43-71 105 21 5 $16.62 $63.00 11.66667 6.12
      11/29/2018 5x3.6 1.5 $ 94.50 $ 317.48 $ 217.75 $ 629.73 510-8020-441.43-71 18 5 3.6 $34.99 $63.00 2 13.39
      $ - 510-8020-441.43-71
      Subtotal $ 3,521.99
      11/27/2018 6x4 1.15 $ 72.45 $ 332.10 $ 582.65 $ 987.20 510-8025-441.61-71 24 6 4 $41.13 $63.00 2.666667 7.70
      11/19/2018 7x6 1.3 $ 81.90 $ 144.19 $ 251.33 $ 477.42 510-8025-441.61-71 42 7 6 $11.37 $63.00 4.666667 4.97

      Comment


      • #4
        The math looks correct, assuming the inputs are correct, crosschecking your figures results in no noticeable errors.

        I do notice significant variance in equipment, and manpower costs, around 20% relative difference on 11/29. with a second variance on 11/27. These may cause a skew in your data, particularly the one on 11/27 since the manpower and equipment costs are so much more relatively higher.

        Comment


        • #5
          So would I be thinking straight if I eliminated one high and one low or best to eliminate the out of ordinary expenditure from the increased equipment?

          Comment


          • #6
            I know this is not rocket science yet, not having anyone explain how they did this in the past is a challenge. Your input is most helpful and gave me confidence that I was thinking on this correctly, with the exception of the few overages on equipment did askew the average cost.

            Comment


            • #7
              I'm glad I could help. Not having the data from previous trials for validation is always difficult, you can't tell if they did something different or if things have gotten more expensive over time

              Comment


              • #8
                Thank you so kindly for your time and valued input.

                Comment

                Working...
                X