Operating allocation

The operating allocation type is designed for use with typical operating costs such as labour, consumables and parts. The operating allocation type calculates an allocation factor using data from a single calendar period that matches the operating costs being allocated.

Below is an example of the operating allocation calculation logic. In this example, XERAS has calculated the total diesel fuel costs for a Caterpillar 797 haul truck fleet. These fuel costs are then allocated to the mining activities in which the haul truck fleet participates, for example, waste removal and ore mining, using fleet operating hours to calculate the allocation factor.

Data used in the allocation logic is:

1. Total fleet operating hours (from the source spreadsheet):

   

2. Operating hours for each mining activity (from the target spreadsheet):

   

3. Total fleet diesel fuel costs (from the source spreadsheet):

   

The operating allocation logic is as follows:

The result of the allocation logic is the apportionment of diesel fuel costs, on a period-by-period basis, into the waste removal mining activity as follows:

XERAS provides a visual representation of the allocation logic in the Drill Down feature. Right-click on the cell containing the cost allocation, then select Drill Down. The following diagram displays: