During the 1970s, Generac expanded its offerings in the portable and recreational vehicle markets, and in the 1980s the company entered the commercial and industrial markets with its backup power generation systems.
Add each cost to determine the labor burden cost of the employee. In this example, assume you pay $2,000 in payroll taxes, $1,000 in insurance, $2,000 in benefits and $5,000 in supplies and other miscellaneous expenses. Add together $2,000, $1,000, $2,000 and $5,000 to get a labor burden cost of $10,000.
You are going to have both a cost rate and a sell rate. Start with cost. You need to bundle your resources into labor categories. To determine your cost rate, you need to determine all the direct salary and benefit costs of a particular labor category, including the average hourly rate plus benefits.As Pawel suggested 1.2, in the U.S., I find it closer to be 1.5.tart with cost. You need to bundle your resources into labor categories. To determine your cost rate, you need to determine all the direct salary and benefit costs of a particular labor category, including the average hourly rate plus benefits. As Pawel suggested 1.2, in the U.S., I find it closer to be 1.5.