Lifestyles
End of summer
Summer is over, and this discarded horse might not
get another ride for a while, now that children are
putting down toys and tpking up the books for
school.
Answering dinner question
could be difficult to do
Answering the question
"What's for dinner?" can be dif
ficult. It is sometimes hard to come
up with something which is new to
the family, reasonably priced and
not full of extra calories.
Now you can get just such a
recipe over the telephone. The
N.C. Agricultural Extension Ser
vice offers a special "recipe of the
week" on Extension Teletip. Dial
toll-free 1-800-662-7301, and ask
for tape number S.
These are taste-tested econo
mical and nutritious recipes.
Another tape you may want to ask
for is tape number 1101 on good
food buys every two weeks.
Here is one recent recipe of the
week. This one takes advantage of
garden-fresh vegetables.
French-styled Vegetable Stew
1 cup chopped onions
On the
Front Burneri
Alice Pettitt
Home Economics
Agent
2 small zucchini, thinly sliced
'/] cup salad oil
3 tablespoons flour
V* cup catsup
2 teaspoons vinegar
2 cloves garlic, minced
1 medium green pepper, cut into
thin strips
1 medium eggplant, pared, cut into
strips
4 medium tomatoes, peeled, cut in
to eights
2 teaspoons oregano
In a Dutch oven, saute the first
Tour ingredients in oil until onion
is transparent. Coat the eggplant
strips with flour, add with
tomatoes to sauteed vegetables.
Combine catsup and remaining in
gredients. Pour over vegetables.
Cover, simmer 30-35 minutes, stir
ring occasionally. Yield: 8 to 10
servings.
Melon Cooler
1 cup diced honeydrew or can
taloupe melon
1 tablespoon light corn syrup
1 cup lime sherbert
1 cup crushed ice
Juice of one fresh lemon
Combine melon and sherbert in
blender. Blend a few seconds.
Then add ice, syrup and lemon
juice. Blend until smooth. Garnish
with lemon slice or melon ball. For
a deeper green color, add a drop or
two of green food coloring. Yield:
2 eight-ounce servings.
DID YOU
KNOW
7
m
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OF NATIONWIDE
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If Age 21 Or Younger
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VardeU Hedgpeth
AGENT
875-4187
JLaijteri} Laije
Apartiqeifts
Just What Raeford Has Been Waiting For...
NEW CONTEMPORARY
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ONE and TWO BEDROOMS, FEATURING:
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1 "Air Conditioning *Heat Pumps *Washer and Dryer Connections
RENTS STARTING AS LOW AS $190
Located on S. Main Street
FOR RENTAL INFORMATION CONTACT:
John Wellons Management Co.
875-4415
MAIL APPLICATION TO:
P.O. Box 729 Raeford, N.C. WfiSSf?
S BAR-B-Q
1. N.C. 843-2300
CHASON'S
Now Serves A Buffet For Lunch
Wed. thru Sat., 11 a.m. -2:30 p.m.
ALL YOU $995
CARE TO EAT
NO WAITING ... EAT UPON ARRIVAL
Most Items Listed Below On Dinner Menu
Are Also Included In Our Luncheon Buffet
STEAM SHIP ROUND with buffet
THURSDAY NIGHT & ALL DAY SUNDAY
? ? hours
WED. thru SAT.
11:00 to 9:30
WED. thru SUN.
OPEN FOR LUNCH
SUN0AY
11:00 to 8:00
BUFFET OPEN
AU DAY
Bar-B-Q Cooked Over Live Oak Cools
* Chopped By Hand
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CHASON'S
COUNTRY
COLLECTIONS
couNvwaurTs
BY
MMUMCHASON
Farm overhead needs defining
Most farm enterprise budget
guidelines show a bottom-line
figure named "returns of land,
overhead and management."
It's important to understand
what overhead is composed of.
Accountants broadly define
overhead to include business costs
that are neither direct labor or
direct "material" used in produc
ing a product.
In agricultural production,
overhead is similarly defined as
"those costs which are not distinct
ly related to a single enterprise or
portion of an enterprise" (Earl O.
Heady. 1962).
Certainly, such variable costs as
fertilizer, chemicals, seed, feed,
and vet fees are distinctly related to
individual enterprises and are not
overhead.
If analysis is made of equipment
and labor requirements for each
product (enterprise), then these
services, represented by labor
costs, fuel, lubricant and repair ex
penses, should be added to other
direct materials and services since
they have a direct association with
production of each crop or
livestock product.
To fully evaluate the enterprise,
the fixed costs of equipment
ownership (depreciation, property
taxes and insurance) or lease
should also be allocated to the
enterprise as a direct fixed cost,
based on the proportion of annual
hours of use in the enterprise.
So what's left to classify as farm
"overhead?" Obvious categories
are accounting fees, supervisory
hired labor (indirect labor), minor
supplies, property insurance, and
depreciation that cannot be
Extension
News
Willie Featherstone Jr\
County Extension
Chairman
specifically identified with an
enterprise (due to the time and ef
fort needed to allocate it). Utilities,
building repairs, payroll taxes and
employee fringe benefits are other
usual representatives of overhead
costs.
Accountants generally place
land charges (real estate taxes and
rent) in overhead.
Farm management specialists
are inclined to make a separate
category for these major items
separate from overhead.
Accountants customarily ex
clude cash interest paid from pro
duction overhead, classifying it as
an administrative and financing
(higher -level overhead) cost. Ac
countants, as well as economists,
recognize "opportunity" cost, the
value of an asset (equipment, cash,
land) in its most profitable alter
native use, and use the idea in deci
sion making. Interest on operating
capital (a variable cost) and in
terest on investment in fixed assets
(a fixed cost) can, with some exer
tion, be allocated to specific enter
prises, thus excluding them from
the overhead classification.
Some farm operators do not
allocate to enterprises such costs as
fulltime hired labor, equipment
and jointly in several enterprises,
and even some materials such as
chemicals.
All is not lost, so to speak. They
simply have a "broader" defini
tion of overhead and must be
aware of this when comparing
their actual results with more refin
ed published enterprise budget
guidelines.
It should be noted that
regardless of the precision in cost
allocation, overhead includes cost
components that are both variable
(varying in direct proportion to
production volume) and fixed
(unaffected by production volume,
at least within a range of produc
tion volume).
Some costs may be "mixed"
costs. Utilities expense, for exam
ple, often has a fixed component
(such as a flat monthly charge) and
variable component (rising with in
creased production of crops and
livestock).
If you hear a farm management
advisor using the terms
"overhead" and "fixed costs" in
terchangeably -- you should cor
rect him.
1 once heard a farmer say, "If it
weren't for overhead, I'd make a
fortune." The business challenge is
to discover the combination of
resources and enterprises that
"contribute" (sales less direct
variable and overhead variable
costs) the most to covering fixed
costs.
Cost analysis can show the path
to earning higher net (taxable)
farm income. You may have to
make substantial adjustments in
enterprise and resource combina
tions (and your accounting system)
to improve business income. Some
overhead expenses can be controll
ed by careful observation and
analysis during the year.
,e TEXACO
MOTOR
z- ? QT. OIL
Texaco
Ks J0^40 motor oil.
Limit 5 Quarts.
6 ROLL.
b -PACK TISSUE
2fK?&y,??rol,pack
LW?2S?(,P,,yba,h,'"ue
TWO
liter ,
Choose from new Coke^^
???* diet Coke',
Cherry Coke or Sprite.
SUSTSL?/* 42~ frln0?*
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