Calculating Labor Cost Per Unit
Why do missiles cost so much per unit?
Is there a way to sort by cost per unit?
All recipes ranked by cost per unit! What is worth it to make without Julia? : bearandbreakfast
What is per unit price?
The per unit price is the price of an item per each unit that is purchased or sold. This is the same as the unit price, but worded in a different way.
Why do we use price per unit?
We use price per unit so that customers can easily calculate and decide how much quantity of a product they want to purchase. This also allows for an easy calculation for sellers to include production costs or delivery costs, for example, all in one sales price.
What is the difference between total cost per unit and quantity sold methods?
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Hi all,
I am struggling with the concept of identifying direct labor cost per unit. I have all of my metrics set up (throughput, number of employees, pay, etc.). Where I am struggling is understand what hours of the day would be calculated into the cost per unit. For example in an 8 hour shift there will be 30 minute set up, 30 minute clean, and a 30 minute lunch. Our "run time" would be 6.5 hours but the hours worked is 8 (it's not this simple with how I stagger shifts but this is just to give an example). I read something on calculating non-run time as incidental costs but I'm not really sure how to approach this. Thanks in advance!