ATCP 103.10(1)(a)(a) The functions to be included are the ownership and operation of buildings and grounds. Expenses shall include, but not be limited to, wage and fringe benefit expense of janitors, watchers, groundskeepers and other personnel employed in this function; rent or depreciation on buildings; real estate taxes; building insurance; building repairs; janitorial and groundskeeping supplies; purchased services for building maintenance and groundskeeping. ATCP 103.10(1)(b)(b) Occupancy expense shall not include water, heat, light and power. ATCP 103.10(1)(c)(c) The expenses accumulated in this category shall be allocated to other functions and cost centers on the basis of the area occupied by such functions and cost centers. Area shall be determined by measuring dimensions from current floor plans or by actual physical measurement of dimensions by tape measure. Occupancy expense for warehouse space shall be allocated to other functions and cost centers in a direct ratio to the occupancy of other space utilized by such functions and cost centers. ATCP 103.10(2)(a)(a) The functions to be included are the housing and maintenance of vehicles. Expenses shall include, but not be limited to, salary, wage and fringe benefit expense of all personnel engaged in this function; depreciation and insurance of garage equipment; noncapitalized expendable tools; garage supplies; purchased parts; purchased repairs to vehicles. ATCP 103.10(2)(b)(b) Expenses not to be included are gas; oil; tires; licenses; depreciation and insurance on vehicles; occupancy expense. ATCP 103.10(2)(c)(c) Expenses accumulated in this category shall be converted into a value per unit factor. The unit factor value shall be based on the number of vehicles in each of 5 categories and upon a factor which represents the relative maintenance cost for each type of vehicle. The vehicle categories are passenger cars, retail route trucks, wholesale route trucks, ice cream route trucks, tank trucks and vans. Maintenance factors are passenger cars 1.0; retail route trucks 1.5; wholesale route trucks 1.8; ice cream route trucks 1.8; tank trucks and vans 2.5. The number of vehicles in each category shall be multiplied by the proportional maintenance factor for that category. The total of such extension shall be divided into the total garage expense from which a value per unit factor will be determined. This unit factor value shall be the basis for allocating garage expense back to the several categories of vehicles. Such allocations shall be transferred to the applicable functions and cost centers. In the event detailed records for individual vehicles or types of vehicles are kept, such records may be used in lieu of the relative maintenance factor, provided such records include all of the expense items specified herein. ATCP 103.10(3)(a)(a) Functions included in this category are executive, financial and accounting; personnel, purchasing and general clerical. Expenses shall include, but not be limited to, salaries and fringe benefit expense of officers, department heads, their secretaries and clerical staffs; telephone and telegraph; dues, subscriptions and donations; stationery and supplies; professional services; home office expense allocations where dairy is a division of a larger corporation; franchise taxes; taxes on inventory or sales volume; insurance and depreciation on office equipment; interest paid and bank charges; allocated occupancy expense. ATCP 103.10(3)(b)(b) Expenses not to be included are salaries, commissions and fringe benefit expense of salespersons and expense of vehicles assigned to them; salaries, wages, commissions and fringe benefit expense of managers of retail and wholesale sales and distribution, unless they are officers; route supervisors and driver salespersons; salaries and fringe benefit expense of plant supervisors unless they are officers; bad debts. ATCP 103.10(3)(c)(c) The time and corresponding salary and fringe benefit expense of administrative personnel and of their direct secretarial personnel, along with all other expenses in this category, shall be assigned to individual cost centers or products whenever possible. The time and corresponding salary and fringe benefit expense of administrative personnel and of their direct secretarial expense, along with all other expenses which are not assigned to specific cost centers or products, shall be assigned to all products and allocated on the basis of total dollar sales. All expenses assigned to milk products, ice cream products and special products shall be allocated on the following basis: ATCP 103.10(3)(c)1.1. Milk products expenses shall be allocated to categories of sales and distribution (retail, wholesale, vendor, special routes) on the basis of quart equivalents sold or delivered through such sales distribution methods. ATCP 103.10(3)(c)2.2. Ice cream products expenses shall be allocated to sales and distribution categories on the basis of the number of gallons sold or delivered through such distribution methods. ATCP 103.10(3)(c)3.3. Special products expenses shall be allocated on the basis of units of weight or measure in which they are customarily sold (e.g. powdered milk—pounds; egg—dozen). ATCP 103.10(4)(a)(a) The functions included in this category are the procurement of raw milk and transportation to the processing plant. Expenses shall include, but not be limited to, salaries, wages and fringe benefit expense of the supervisor of procurement (if not an officer); fieldpersons and drivers of vehicles used in collection of milk; direct expense of operation of vehicles used in collection of milk (gas, oil, tires, depreciation, insurance); contract hauling expense; farm promotion expense; veterinary fees; expense of field and outside labor; laboratory tests; market administrator’s fees. ATCP 103.10(4)(b)(b) Expenses not to be included are repairs and purchased parts for vehicles, salaries of officers involved in raw milk procurement; receiving expense; garage expense; general and administrative expense. ATCP 103.10(4)(c)(c) The total of expenses included in this category shall be included in raw material cost. ATCP 103.10(5)(a)(a) The function included in this category is the purchase or production of water, steam, power and refrigeration. Expenses shall include, but not be limited to, wages and fringe benefit expense for stationary engineers and other personnel engaged in the production of these services; depreciation, insurance, supplies and repairs on equipment used in the production of these services; electric power and lights for plant and office; fuel for heating and steam production and similar services for plant and office; water for plant and office. ATCP 103.10(5)(c)(c) The total of the expenses in this category shall be included in processing and packaging expense. ATCP 103.10(6)(a)(a) Functions included are all plant functions from receiving of raw materials to loading of route trucks and including the handling of finished products at branch depots. Expenses to be included in this category are all salaries, wages and fringe benefit expense of all plant and loading platform labor and supervision; all supplies and purchased services for the plant, warehouse, cold room, hardening room and platform; all repairs, royalties, depreciation and insurance on plant equipment; all wages, fringe benefit expense, truck expense and other expense of transporting finished products from the plant to a distribution point which is not located at the plant; allocated general and administrative expenses; allocated occupancy expense; water, steam, power and refrigeration. ATCP 103.10(6)(b)(b) Expenses not to be included are salaries and fringe benefit expense of plant supervisors who are officers of the company. ATCP 103.10(6)(c)(c) The salaries, wages and fringe benefit expense of personnel assigned to processing, packaging and loading platform functions shall be assigned to the cost centers in which they are employed on the basis of time spent in such cost centers. ATCP 103.10(6)(d)(d) The depreciation expense for equipment used in processing and packaging and loading platform functions shall be assigned to those functions on the basis of depreciation records for such equipment. ATCP 103.10(6)(e)(e) Other expenses in this category shall be assigned to cost centers on the basis of available records or utilization. ATCP 103.10(6)(f)(f) The transportation to branch expense shall be assigned to the loading platform function. ATCP 103.10(6)(g)(g) The expense for water, steam, power and refrigeration shall be allocated to milk and ice cream products through the cold room and hardening room cost centers on the basis of point values (see Table I). For the purpose of this allocation only, one gallon of ice cream, one gallon ice cream mix or 3 dozen novelties are the equivalent of 20 fluid milk points. ATCP 103.10(6)(h)(h) The general and administrative expense shall be allocated to cost centers in the same proportion that other identifiable cost center expense sub-totals bear to total expense. ATCP 103.10(7)(a)(a) The functions included in this category are sales, advertising and promotion. The expenses shall include salaries, commissions, fringe benefit expense and traveling expenses of sales managers, salespersons, advertising managers, promotional driver salespersons not serving a regular delivery route, and the stenographic and clerical help directly assigned to such personnel; automobile and truck expense of personnel engaged in this function; promotion expense, including contest expense; advertising space, time, preparation and printing expense; all other direct expenses of advertising and promotion; bad debts. ATCP 103.10(7)(b)(b) Expenses not included in this category are salaries and fringe benefit expense of sales managers who are officers; wages, commissions and fringe benefit expense of driver salespersons. ATCP 103.10(7)(c)(c) Expenses in this category shall be assigned to product groups, milk or ice cream on the basis of the method of distribution (milk retail, milk wholesale, milk vendor, milk special route, milk private label, ice cream wholesale, ice cream vendor, ice cream special route, ice cream private label), provided that advertising space, time, preparation and printing expense and all other direct expense of advertising and promotion, other than internal promotion not directed to the general public, shall be assigned to all products and allocated on the basis of total dollar sales. None of the advertising or promotion expense shall be allocated to private label sales. Allocated occupancy expense shall be assigned to all products and allocated on the basis of total dollar sales. ATCP 103.10(8)(a)(a) The expenses shall include, but not be limited to, the following: raw milk; cream; skim purchased; ingredients; pre-processing expense; ice cream or ice milk mixes; condensed or concentrated milk or skim milk; dry milk powders; any other fluid or dry milk products. ATCP 103.10(8)(b)(b) The cost of raw milk to a wholesaler, regulated by Federal Market Order, shall not be less than the applicable class price and its applicable butterfat differential announced by the federal market order administrator regulating such wholesaler and any additional cost to the wholesaler such as premiums, handling and all other charges, unless a lesser cost for any applicable class can be shown by the wholesaler. Such costs shall include any federal market administrator audit adjustments. ATCP 103.10(8)(c)(c) In the absence of proof of a lesser cost, a producer wholesaler selling milk of his or her own production shall include a cost per hundredweight of milk not less than the applicable class price and its applicable butterfat differential announced by the federal market administrator when such producer wholesaler is located in a geographic area regulated by any Federal Market Order. When such producer wholesaler is not located in a geographic area regulated by any Federal Market Order, in absence of a proof of lesser cost, he or she shall include a cost per hundredweight of milk not less than the applicable class price and its applicable butterfat differential announced by the federal market administrator of the Federal Market Order that is closest to the plant of such producer wholesaler. ATCP 103.10(8)(d)(d) Any wholesaler not regulated by federal market order administrator shall use the price actually paid for milk purchased from producers or other sources. The price shall include all additional costs, such as premiums, handling and all other related charges. ATCP 103.10(8)(e)(e) In determining separate prices for a hundredweight of butterfat and skim milk, the computation involves applying the announced butterfat differential to the prices of 3.5% milk. The computations would be as follows: Class I skim value = Class I price – (B.F. Diff. × 35)
Class I butterfat value = Class I price + (B.F. Diff. × 965)
Class II skim value = Class II price – (B.F. Diff. × 35)
Class II butterfat value = Class II price + (B.F. Diff. ×965)
ATCP 103.10(8)(f)(f) All raw materials purchased from sources other than producers shall be included at invoice cost. ATCP 103.10(8)(g)(g) The cost accumulated in this category of raw material expenses shall be accumulated for all products processed, and converted by computation to unit costs in accordance with unit weights specified in s. ATCP 103.17, Table VI. ATCP 103.10 HistoryHistory: Cr. Register, November, 1966, No. 131, eff. 12-1-66; am. (8) (c), Register, December, 1972, No. 204, eff. 1-1-73; corrections made under s. 13.93 (2m) (b) 5., Stats., Register, April, 1993, No. 448; am. (8) (g), Register, March, 1994, No. 459, eff. 4-1-94. ATCP 103.11(1)(1) Expense summaries from other functional categories shall be converted into unit costs. Expense totals shall be divided by a quantitative factor which accurately reflects the volume or level of activity for that expense total. ATCP 103.11(2)(2) For dairy plant processing and packaging functions the following conversion factors shall be used; receiving—quart; pasteurizing and separating—points; bottle wash and sorting—quart equivalent (glass); fiber case handling—quart equivalent (paper); filling and casing-paper—quart equivalent; filling and casing-glass—quart equivalent; filling and casing-cottage cheese—pound; bulk wash and filling—gallon; processing-other products—quart equivalent; processing-special products—pound or other unit of weight or measure customarily used; cold room—case; processing ice cream mix—gallon; packaging ice cream—gallon; packaging novelties—dozen; hardening ice cream—gallon, or dozen (novelties); loading platform-milk—case; loading platform-ice cream—gallon, or dozen (novelties); loading platform-special products—pound or other unit of measure. ATCP 103.11(3)(3) Expense summaries for each of the sales and distribution categories of sales, advertising and promotion shall be converted to unit cost on the following basis: ATCP 103.11(3)(c)(c) Special products on basis of the unit of quantity or measure in which they are customarily sold. ATCP 103.11(3)(d)(d) Sales, advertising and promotion expense not specifically allocated to sales or distribution categories shall be summarized and charged to all products equally on the basis of total dollars of sales; provided none of such expense shall be charged to private label sales. ATCP 103.11(4)(4) Each of the expense summaries for filling and casing-paper, filling and casing-glass, filling and casing-cottage cheese, and bulk washing and filling shall be further segregated into expenses and costs associated with specific package sizes. Total expenses for each of such functions shall be allocated to individual package sizes on the basis of the proportionate amount of time required to fill a normal day’s production volume based upon the rated machine or line speed expressed in units per minute. In the event of a recent and significant change in filling equipment or method, the period chosen to determine filling machine line speed shall be limited to the period subsequent to the change. ATCP 103.11 HistoryHistory: Cr. Register, November, 1966, No. 131, eff. 12-1-66; am. Register, March, 1994, No. 459, eff. 4-1-94. ATCP 103.12(1)(1) Unit container cost shall be determined for each size and type of container. ATCP 103.12(2)(2) In the case of glass containers the purchase price for each size and type of container shall be determined from purchase records. The purchase price shall be divided by the number of trips for each size and type of container to determine the unit trip cost. Trippage shall be determined from documented records. The cost of any additional packaging materials shall be added to the unit container cost. Container deposits actually charged to and collected from customers may be deducted from unit container cost. ATCP 103.12(3)(3) Purchase price for plastic and paper containers shall be determined from purchase records, to which shall be added costs due to losses in filling and the cost of any additional packaging materials to arrive at unit container cost. ATCP 103.12 HistoryHistory: Cr. Register, November, 1966, No. 131, eff. 12-1-66. ATCP 103.13ATCP 103.13 Unit case cost. Unit case costs shall be determined for each type and size of case by dividing the purchase price by the number of trips per case. The cost per case trip shall be divided by the number of containers each case holds to determine the case cost per unit sold. ATCP 103.13 HistoryHistory: Cr. Register, November, 1966, No. 131, eff. 12-1-66. ATCP 103.14ATCP 103.14 Unit platform cost. The unit platform cost shall be determined for each product and package size. Platform cost includes all cost for material, labor and expense up to and including the loading of the product on the route truck and includes adjustments for sales returns. It includes all costs except local delivery cost. Selling, advertising and promotion costs and other general costs shall be determined on a per unit basis based on the number of points assigned to individual products and packages under s. ATCP 103.17, Table I. ATCP 103.14 HistoryHistory: Cr. Register, November, 1966, No. 131, eff. 12-1-66; am. Register, January, 1975, No. 229, eff. 2-1-75; am. Register, March, 1994, No. 459, eff. 4-1-94. ATCP 103.15(1)(1) The functions included in this category are route operations and supervision. The expenses shall include, but not be limited to, allocated garage expenses; allocated general and administrative expenses; salaries, commissions and fringe benefit expenses of route driver-salespersons, relief driver-salespersons, and their immediate supervisors; route truck operation expenses; all other direct expenses of route operation. Expenses which are not included in this category are salaries, commissions and fringe benefit expenses of driver-salespersons operating as promoters not assigned to regular delivery routes; route truck operation expense of trucks regularly driven by such promoters; operation expense of trucks used to haul products to a depot. ATCP 103.15(2)(2) The expenses accumulated in this category shall be assigned to the distribution categories, whenever possible, on the basis of direct measurement or identification. ATCP 103.15(3)(3) Garage expense shall be assigned to distribution categories on the basis of the number of vehicles normally assigned to each category, and on the basis of the unit factor cost determined in “garage expense.” ATCP 103.15(4)(4) The expenses in this category which cannot be specifically identified and assigned to specific distribution categories shall be allocated to such categories on the basis of the number of distribution routes in each category. ATCP 103.15(5)(5) The total of the expenses assigned to the wholesale distribution category shall be further computed in accordance with the following steps to arrive at the per unit wholesale delivery cost: ATCP 103.15(5)(a)(a) Summarize all wholesale distribution expenses (labor and truck expenses). ATCP 103.15(5)(b)(b) Summarize and total all routeperson’s time for all routes being analyzed. Total time shall be summarized in minutes. ATCP 103.15(5)(c)(c) Divide total wholesale distribution expenses by the total number of delivery minutes to get delivery cost per minute. ATCP 103.15(5)(d)(d) Multiply cost per minute by service time to get specific cost per delivery. For purposes of this calculation, the wholesaler shall use appropriate wholesale delivery services times for full service delivery, modified drop delivery and drop delivery as set forth in s. ATCP 103.17, Tables III, IV and V, unless the wholesaler submits documentation proving that the wholesaler’s actual delivery service times are different from those shown in the tables. Service time for warehouse delivery of milk products and wholesale ice cream deliveries shall be based on actual measurement. ATCP 103.15(5)(e)(e) Multiply all time other than service time by cost per minute to get total common cost. ATCP 103.15(5)(f)(f) Divide total common cost for all routes by the number of deliveries of all types to get common cost per delivery. ATCP 103.15(5)(g)(g) Add specific cost to common cost to get total cost per delivery. ATCP 103.15(5)(h)(h) Divide total cost per delivery by the number of points delivered, as determined by s. ATCP 103.17, Table II, to get delivery cost per unit. ATCP 103.15 HistoryHistory: Cr. Register, November, 1966, No. 131, eff. 12-1-66; am. (5) (d), Register, January, 1975, No. 229, eff. 2-1-75; corrections made under s. 13.93 (2m) (b) 5., Stats., Register, April, 1993, No. 448; am. (5) (d) and (h), Register, March, 1994, No. 459, eff. 4-1-94. ATCP 103.16ATCP 103.16 Total wholesale cost per unit. The total wholesale cost per unit shall be determined by adding to the unit platform cost, the delivery cost per unit. ATCP 103.16 HistoryHistory: Cr. Register, November, 1966, No. 131, eff. 12-1-66. TABLE I
PRODUCT POINT VALUES; MANUFACTURING
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