Welding & Fabrication worked example

Fabrication Labor Cost with parts in the fabrication run of 50 parts: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop parts in the fabrication run to 50 parts, then walk the calculation through step by step. Estimate fabrication labor cost from labor hours, hourly rate with burden, indirect support, and one-time setup.

The inputs for this scenario

  • Parts in the fabrication run: 50 parts (the input this scenario stresses; the baseline uses 100)
  • Direct labor hours per part times loaded rate: 28 $ / part (held at the documented default)
  • One-time setup, programming, and fixturing labor: 320 $ (held at the documented default)
  • Indirect support and supervision: 450 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Total fabrication labor cost = parts × direct labor cost per part + one-time setup labor + indirect support and supervision.
  • Total fabrication labor cost works out to 2,170 $ at these inputs, and this is the headline figure for the scenario.
  • Fabrication labor cost per part works out to 43.4 $ / piece at these inputs.
  • Direct labor cost per part works out to 1,400 $ at these inputs.
  • Setup, indirect, and supervision labor works out to 770 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where parts in the fabrication run sits at 100 parts and the headline result is 3,570 $, this scenario comes in 39.22% below the baseline at 2,170 $.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to parts in the fabrication run, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It treats setup and indirect support as fixed for the run, so on very small lots the per-part number swings hard — and it does not include consumables, gas, wire, or machine burden, which are material/overhead, not labor.

Results at a glance

  • Total fabrication labor cost: 2,170 $ (headline result)
  • Fabrication labor cost per part: 43.4 $ / piece
  • Direct labor cost per part: 1,400 $
  • Setup, indirect, and supervision labor: 770 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Fabrication Labor Cost calculator, set parts in the fabrication run to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.