Tube, Pipe & Profile Forming worked example

Labor Per Assembly at 58% direct labor capture factor: a worked example

Suppose direct labor capture factor falls to 58%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Labor Per Assembly tells a tube, pipe and profile forming shop exactly how much direct labor is baked into every welded frame, bent handrail or roll-formed section it ships.

The inputs for this scenario

  • Assemblies produced per run: 100 units (held at the documented default)
  • Labor cost per assembly: 45 $ / unit (held at the documented default)
  • Direct labor capture factor: 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed setup and tooling cost: 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Labor Per Assembly cost = quantity × rate × capture factor + fixed cost.
  • Weighted cost works out to 2,860 $ at these inputs, and this is the headline figure for the scenario.
  • Per piece value works out to 28.6 $ / piece at these inputs.
  • Captured value works out to 2,610 $ at these inputs.
  • Fixed adjustment works out to 250 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where direct labor capture factor sits at 80% and the headline result is 3,850 $, this scenario comes in 25.71% below the baseline at 2,860 $.
  • It computes the total direct labor cost for a forming run and the labor dollars carried by each individual assembly. 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

  • Weighted cost: 2,860 $ (headline result)
  • Per piece value: 28.6 $ / piece
  • Captured value: 2,610 $
  • Fixed adjustment: 250 $

Run it with your numbers

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

Last reviewed 2026-05-12.