Re: labor rate / overhead calcs

On Mar 26, 10:49 am, "RaceBikesOrWork" <mzobr...@xxxxxxxxx> wrote:
On Mar 26, 10:05 am, "Jean Marc" <jean-marc.brun -at- tgcp.fr> wrote:



"RaceBikesOrWork" <mzobr...@xxxxxxxxx> a écrit dans le message de news:
1174919712.790947.37...@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

I am having a disagreement with a non-technical manager that maybe
some of you gurus could help with.

He is telling me our labor costs are $30 per hour, but our average pay
rate is $11 per hour. I can't see where a man hour would cost us more
than $20 per hour.

Anybody have any formulas out there? This is a small operation, 20-30
employees.

Consider the hours you bill (production), and everything necessary to make
it work:
- Hours: commercial, accounting, your boss.... On top of that, add social
security (health), unenployment, retirement,... (where that applies)
- Fix costs : building, heating, light, insurances,...
- Taxes,
-...

I am only looking for costing so we can evaluate profit on past
projects. We are not a job shop, but a builder of custom automated
equipment.
Our guys have to pay half of the insurance premium. Retirement is not
provided, other than a 401K that the company contributes little to.

I am only looking for labor costs, not labor rate to quote to a
customer. This is not for estimation, but for evaluation of profits
from a project already accomplished.

I'm getting the feeling that the question comes from not having an
explicit description in a contract of how things are to be "accounted
for". Been there, done that, and I dislike legal disagreements as all
the profits disappear into lawyers' condo payments.

FWIW, I recommend trying to get everyone to realize it is in the best
interests of all concerned for the future benefit of the company to
make reasonable and honest solutions to the prior outstanding issues,
so everyone is motivated to move forward in the best possible way.

Bo

.

Relevant Pages

  • Re: Oil chiefs unfazed by Republican grilling
    ... > Most industries have their profits reduced as costs go up. ... Buy the supplies at the doubled price, ...
    (soc.retirement)
  • Re: OT: Exxon-Mobil Oil earnings . (Just a tad greedy ?)
    ... companies are finally making sufficient profits to attract investors and to finance exploration and infrastructure costs, they ought to be nationalized or price-controlled." ... So what did they do before that time in order to finance exploration and infrastructure costs? ... Get rid of that gas guzzler RV and, like some of us more ecologically-responsible people, squeeze your ... have any competition whatsoever and where the price of goods sold between what few, so-called, "competitors" there are don't vary by more than pennies in any realistic way. ...
    (rec.outdoors.rv-travel)
  • Re: B Obama and the socialist New Party
    ... production and distribution, telecommunications, the railways and car ... citizens, and costs a third or so ... they might even be able to fund the programs with those profits. ... suited for private industry. ...
    (talk.origins)
  • Re: Traveling to Crewe (extortionate!)
    ... That's quite a bit below those petrol costs. ... Virgin Rail Group "profits" in 2006-7, ... different rates on various routes (West Coast vs East Coast) is more ... diesel for the train costs, ...
    (uk.railway)
  • Re: OT: WALMART OPENS SUPER STORES ON THANKSGIVING
    ... If labor costs, or material costs, goes up...the selling price will go ... I had the house built that I live in. ... There are some big boys in the home construction business like Pulte ... Companies don't retain profits ...
    (alt.marketing.online.ebay)