calculation of standard labor rate
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Calculation of standard labor rate

FASuite calculates an average labor rate for all employees for whom there is a check (ü) in the Charges time field on the Scheduling tab of the Data -> Shop Activity -> Setup -> Employees -> Primary Information screen.

FASuite selects the first non-zero labor rate it finds in the following sequence:

  1. A labor rate for standard charges for the employee (as specified on the Rates tab of the Data -> Shop Activity -> Setup -> Employees -> Primary Information screen).

  2. A location labor rate for the employee’s assigned shop (as specified on the Rates and Markups tab of the Data -> Setup -> Organization Structure -> Locations -> Primary Information screen).

  3. An average system labor rate (as specified on the Rates and Markups tab of the Data -> Shop Activity -> Setup -> Options screen).

To calculate a standard labor rate for all employees with a non-zero labor rate, FASuite calculates the total of the rates for all such employees and divides it by the number of employees. FASuite uses this rate when it calculates the standard costs per meter unit.