Labor Hourly Rate

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Labor Hourly Rate Formula

\(\large{ LHR = \frac{ HPR \;+\; PT \;+\; FBC }{ n }   }\)   

Where:

\(\large{ LHR }\) = labor hourly rate

\(\large{ FBC }\) = fringe benifit costs

\(\large{ HPR }\) = hourly pay rate

\(\large{ n }\) = number of hour worked in the pay period

\(\large{ PT }\) = payroll taxes

 

Tags: Equations for Manufacturing