Burden Rate
Burden Rate
(OP)
Is it correct to divide the sum of the manufactoring cost (Machines, tools, energy, etc.) by the total hours of all the workers? Or do you divide by the total hours of just one worker?
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RE: Burden Rate
RE: Burden Rate
RE: Burden Rate
A typical exercise would allocate the manufacturing burden across all the manufacturing labor, but, you can allocate it across all the workers, since that would allow you to spread the engineering burdens across all the workers as well and thereby come up with a lower engineering rate.
TTFN
RE: Burden Rate
Regards,
RE: Burden Rate
Jack Painter
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