Fastener Manufacturing & Thread Rolling worked example

Labor Cost at 72% chargeable labor capture: a worked example in fastener manufacturing & thread rolling

Suppose chargeable labor capture falls to 72%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate direct fastener production labor cost from labor hours, loaded hourly rate, labor capture factor, and fixed crew or setup cost.

The inputs for this scenario

  • Direct labor hours for the lot: 14 hr (held at the documented default)
  • Loaded labor rate: 48 $ / hr (held at the documented default)
  • Chargeable labor capture: 72 % (the input this scenario stresses; the baseline uses 100)
  • Fixed setup or crew labor cost: 160 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Labor cost = direct labor hours × loaded labor rate × labor capture + fixed labor cost.
  • Total fastener labor cost works out to 644 $ at these inputs, and this is the headline figure for the scenario.
  • Average cost per labor hour works out to 45.99 $ / hr at these inputs.
  • Variable labor cost works out to 484 $ at these inputs.
  • Fixed labor cost works out to 160 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where chargeable labor capture sits at 100% and the headline result is 832 $, this scenario comes in 22.62% below the baseline at 644 $.
  • It computes total labor cost as direct hours times loaded rate times a capture factor, plus a fixed setup or crew labor amount, and the average cost per hour entered. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Total fastener labor cost: 644 $ (headline result)
  • Average cost per labor hour: 45.99 $ / hr
  • Variable labor cost: 484 $
  • Fixed labor cost: 160 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Labor Cost calculator, set chargeable labor capture to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.