Chargeback- Critical To Your Survival

Example 2: If your hourly labor rate is $ 15.38 and your average production for a machine is 5,000 pages: $15.38 / 5,000 = $0.0031 / page

Now that you have determined your average hourly labor rate, you have to decide whether you want to apply the same equal rate to all areas of production. The simplest approach is a standard hourly rate, however, there may be some processes that you want to charge at higher or lower hourly rates. To do that, add the appropriate salaries together with a percentage of the benefits and you will have an hourly rate for that specific process. Then follow examples one and two to revise your average costs.