Mixing, Blending & Industrial Batch Processing worked example

Labor Per Batch at 99% direct charge factor: a worked example in mixing, blending & industrial batch processing

Push direct charge factor up to 99% and the picture changes. This example computes every intermediate figure at that operating point. Use it when production needs an honest labor cost per batch for a recipe quote, a make-versus-buy review, or a continuous improvement business case.

The inputs for this scenario

  • Direct labor hours per batch: 3.5 hr (unchanged)
  • Loaded labor rate: 48 $ / hr (unchanged)
  • Direct charge factor: 99 % (raised for this scenario; the documented default is 90)
  • Indirect labor overhead: 65 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Labor per batch = direct labor hours × loaded labor rate × direct charge factor + indirect labor overhead) to the inputs above produces each figure below.
  • At this operating point the engine returns 231 $ / batch for weighted cost, the number this scenario is built around.
  • At this operating point the engine returns 66.09 $ / piece for per piece value.
  • At this operating point the engine returns 166 $ for captured value.
  • At this operating point the engine returns 65 $ for fixed adjustment.

How this compares with the baseline

  • Against the tool's baseline example, where direct charge factor sits at 90% and the headline result is 216 $ / batch, this scenario comes in 6.99% above the baseline at 231 $ / batch.
  • It computes loaded labor cost per batch from direct hours and rate, scaled by a direct-charge factor, plus a fixed indirect overhead amount, and also returns 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

  • Weighted cost: 231 $ / batch (headline result)
  • Per piece value: 66.09 $ / piece
  • Captured value: 166 $
  • Fixed adjustment: 65 $

Run it with your numbers

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

Last reviewed 2026-05-12.