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Calculate rates for any equipment or service
Calculate budgeted hourly rates for any printing and packaging equipment or service.
Gain insight into your true costs
Get a detailed breakdown of every cost component that composes your hourly rates.
Works with any estimating software
Provides budgeted hourly rates (BHRs) required by any estimating & costing MIS/ERP software.
Fast and easy
No accounting knowledge needed. Update your budgeted hourly rates in just minutes!
Benchmark against other companies
Benchmark your labor, factory, and overhead costs and BHRs against other companies.
Increase Good Sales, Eliminate Bad Sales
Win more orders with higher profit and contribution margins.
Built-in industry "Blue Book" rates study
Includes cost and rates studies for thousands of equipment and services for comparisons.
Import your data
Effortlessly import your spreadsheets, income statements, budgets, and other data.
Find the best pricing strategy
Create various cost and material markups and pricing strategies using your budget.
Project your profitability
Create income statement based on your budget with projected profit margins and ratios.
Create multiple sets of rates
Manage rates and costs for multiple companies, divisions, locations, or what-if scenerios.
Track changes in costs and rates
See how your rates and costs have changed over time and why.
Satisfaction guarantee or your money back!
If you're not happy within the first 30 days, for any reason, we'll refund all of your money.
FREE expert consulting support
You receive support from a real live Profectus industry business consultant, for any reason.
Makes Spreadsheets Obsolete
Cost Rates Advisor is considerably easier, faster, and more reliable than spreadsheets.
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Cost Rates Advisor runs in the cloud. Use it anywhere with a browser and internet.
Frequently Asked Questions
The answers to common questions about budgeted hourly rates and Cost Rates Advisor.
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Direct Manufacturing Hourly Cost Rates for Printing Equipment

Direct Manufacturing Hourly Cost Rates for Printing Equipment

Direct Manufacturing Costs are expenses that are necessary to specifically produce or manufacture a product. These expenses can consist of, but not limited to: supplies needed to operate equipment, equipment maintenance and repairs expenses, equipment asset depreciation, equipment leases, and a portion of building occupancy costs needed for the production area.

Direct Labor Costs are the annual cost of each production operator or helper directly associated with manufacturing products. This would include their wages, company paid benefits (health insurance, retirement, bonuses) and company paid payroll taxes.  Production supervisors can also be designated as direct labor.

Chargeable Production Hours are the time the equipment or service is producing billable product or work. This typically includes makeready or setup, running, and washup or cleanup. Equipment downtime for repairs or maintenance is NOT considered chargeable production time. Most Management Information Systems include a report of Chargeable Production Hours in the Job Costing or Shop Floor Data Collection application.

The Direct Manufacturing Hourly Cost Rate is the annual Direct Manufacturing Costs divided by the annual budgeted chargeable hours.

$40,000 Annual equipment Repairs and maintenance costs
+    $100,000 Annual equipment depreciation or lease costs
+ $80,000 Annual equipment labor costs (including employer paid benefits, insurance, and taxes)
  $220,000 Annual Total Direct Manufacturing Costs
     
/ 2,020 Annual Chargeable Production Hours (1 shift)
  $108.84 Direct Manufacturing Hourly Cost Rate

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Profectus, Inc. · Sarasota, Florida · United States · Phone: 1-888-868-8662
Business management consultants specializing in the printing & packaging industry since 1993.
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