Mixing, Blending & Industrial Batch Processing worked example

Labor Per Batch at 65% direct charge factor: a worked example in mixing, blending & industrial batch processing

Here is what the math looks like when conditions slip. We hold every other input steady and drop direct charge factor to 65%, then walk the calculation through step by step. Cost labor per batch from direct hours, loaded labor rate, direct charge factor, and indirect labor overhead.

The inputs for this scenario

  • Direct labor hours per batch: 3.5 hr (held at the documented default)
  • Loaded labor rate: 48 $ / hr (held at the documented default)
  • Direct charge factor: 65 % (the input this scenario stresses; the baseline uses 90)
  • Indirect labor overhead: 65 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Labor per batch = direct labor hours × loaded labor rate × direct charge factor + indirect labor overhead.
  • Weighted cost works out to 174 $ / batch at these inputs, and this is the headline figure for the scenario.
  • Per piece value works out to 49.77 $ / piece at these inputs.
  • Captured value works out to 109 $ at these inputs.
  • Fixed adjustment works out to 65 $ at these inputs.

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 19.43% below the baseline at 174 $ / batch.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to direct charge factor, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. The direct-charge factor and indirect overhead are estimates; if your shared-operator allocation is wrong, the per-batch cost will be systematically off.

Results at a glance

  • Weighted cost: 174 $ / batch (headline result)
  • Per piece value: 49.77 $ / piece
  • Captured value: 109 $
  • Fixed adjustment: 65 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Labor Per Batch calculator, set direct charge factor to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.