The man hour rating is the minimum number of man-hours a job can take for you to still make your dollar per man-hour goal. You will use man hour rating to help you determine exactly how profitable each of your jobs cost.
To determine a job's man hour rating, you must first determine your company's dollar per man-hour goal. You must then divide the job's Charge Per Job by your dollar per man-hour goal and then you will have the job's Man Hour Rating. The following is a simplified mathematical explanation:
Calculating the Man-Hour Rating:
Let us say that your company has a year-end goal of $200,000. You have four production employees. They work on average 45 hours per week and 45 weeks per year. We must first calculate your dollars per man-hour goal.
Now take your $24.69 per man-hour goal and calculate the man-hour rating for a job for which you are charging $40.00 per job.
You would now enter 1.62 hours as the man hour rating for this job. This field is located on the "Job Detail" screen.
