How To Calculate Effective Labor Rate
How To Calculate Effective Labor Rate . Many in the collision repair industry feel effective labor rate is the key performance indicator that most accurately shows a shop’s profitability. The following example problems outline how to calculate effective labor rate. How to calculate the Effective Labor Rate in an automotive service from www.youtube.com Hourly labor cost = annual payroll cost / actual hours worked. Profit labor sales in your service operation. The effective labor rate is calculated by taking total labor sales dollars and dividing by the total labor hours billed for a given period: