BUDGETED HOURLY RATES
Having accurate Budgeted Hourly Rates is the first step to Profitability.
Ensuring that the rates you apply in your estimating program will capture your true costs
is a vital aspect to proper estimating and costing.
The Budgeted Hourly Rate (BHR) will allow you to enter all costs (Factory Overhead,
Administrative Overhead, Cost of Equipment, Direct Labor, Financing etc) and all factory
specifications such as square footage.
The program will then calculate the cost per hour for each piece of Production Equipment
at different levels of Productivity.
You will now know exactly the cost of running each piece.
After all if you don't know your costs, how do you know your profits ?