Start with the Annual Salary including Benefits which is the yearly amount of salary and benefits of a worker. This depends on the region and we have benchmarks that we can help you with.
That Annual Salary is then calculated into a per minute cost, indirect labour is added (management functions) and a Total Labour per Minute cost / 1000 is calculated. This is then multplied by the minutes needed to calculate the Labour Cost per Product.
All costing sheets units are per 1000 so e.g. $2799 per 1000 means $2,79 in the costing sheet.