View Coldwell Banker Residential Brokerage Plymouth County real estate agents or offices and let us help you find the perfect property. We also have area guides that show more information about properties in Plymouth County, MA.
Effective Labor Rate Effective Labor Rate â This basically is your total labor sales, or individual techâs labor sales, divided by the billed hours by the team or individual tech. For example, your shop labor rate is $80, Technician A bills 36 hours and generates $2,380 in labor sales. Take the $2,380 in labor sales, then divide by the 36 hours and you get $66.11 as an effective labor rate. You col-lected 82 percent of your door rate. At 100 percent of your door rate, the total tech labor sales should have been $2,880. I know some of you are saying that you have heard a different definition for effec-tive labor rate. That might be true, but we
= $8.00 per direct labor hour. Notice that the formula of predetermined overhead rate is entirely based on estimates. The overhead applied to products or job orders would, therefore, be different from the actual overhead incurred by jobs or products.This difference is eliminated at the end of the period.redetermined overhead rate is used to apply manufacturing overhead to products or job orders and is usually computed at the beginning of each period by dividing the estimated manufacturing overhead cost by an allocation base (also known as activity base or activity driver).