Fiber Optic Cable & Photonic Interconnects worked example

Labor Cost Per Assembly at 110% chargeable labor capture share: a worked example

Push chargeable labor capture share up to 110% and the picture changes. This example computes every intermediate figure at that operating point. Use it when quoting patch cords, MPO trunks, fanouts, connectorized pigtails, photonic modules, or test-intensive optical assemblies.

The inputs for this scenario

  • Direct optical assembly labor hours: 26 hr (unchanged)
  • Loaded optical assembly labor rate: 48 $ / hr (unchanged)
  • Chargeable labor capture share: 110 % (raised for this scenario; the documented default is 100)
  • Fixed setup or documentation labor cost: 220 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Optical assembly labor cost = labor hours × loaded labor rate × chargeable share + fixed setup labor cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 1,593 $ for total optical assembly labor cost, the number this scenario is built around.
  • At this operating point the engine returns 61.26 $ / hr for average cost per labor hour.
  • At this operating point the engine returns 1,373 $ for variable captured labor cost.
  • At this operating point the engine returns 220 $ for fixed setup/documentation labor.

How this compares with the baseline

  • Against the tool's baseline example, where chargeable labor capture share sits at 100% and the headline result is 1,468 $, this scenario comes in 8.5% above the baseline at 1,593 $.
  • It computes total loaded labor cost for an optical assembly batch and the resulting average cost per direct labor hour. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total optical assembly labor cost: 1,593 $ (headline result)
  • Average cost per labor hour: 61.26 $ / hr
  • Variable captured labor cost: 1,373 $
  • Fixed setup/documentation labor: 220 $

Run it with your numbers

  • Every input above is editable in the live Labor Cost Per Assembly calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.