Fiber Optic Cable & Photonic Interconnects worked example

Labor Cost Per Assembly at 72% chargeable labor capture share: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop chargeable labor capture share to 72%, then walk the calculation through step by step. Estimate optical assembly labor cost from labor hours, loaded labor rate, chargeable share, and fixed setup labor.

The inputs for this scenario

  • Direct optical assembly labor hours: 26 hr (held at the documented default)
  • Loaded optical assembly labor rate: 48 $ / hr (held at the documented default)
  • Chargeable labor capture share: 72 % (the input this scenario stresses; the baseline uses 100)
  • Fixed setup or documentation labor cost: 220 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Optical assembly labor cost = labor hours × loaded labor rate × chargeable share + fixed setup labor cost.
  • Total optical assembly labor cost works out to 1,119 $ at these inputs, and this is the headline figure for the scenario.
  • Average cost per labor hour works out to 43.02 $ / hr at these inputs.
  • Variable captured labor cost works out to 899 $ at these inputs.
  • Fixed setup/documentation labor works out to 220 $ at these inputs.

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 23.8% below the baseline at 1,119 $.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to chargeable labor capture share, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It assumes your loaded rate already folds in benefits, overhead, and fixture depreciation; if those sit in a separate burden pool you will double count or undercount.

Results at a glance

  • Total optical assembly labor cost: 1,119 $ (headline result)
  • Average cost per labor hour: 43.02 $ / hr
  • Variable captured labor cost: 899 $
  • Fixed setup/documentation labor: 220 $

Run it with your numbers

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

Last reviewed 2026-05-12.