How to Calculate Fully Burdened Labor Costs

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1. Determine an Employees Wage and Hours Worked “Determine an employee's hourly wage, the number of hours per year he is available to work and the number of days per year for which he could potentially be absent from work due to sick days or vacation days.” Calculate Number of Actual Hours Worked

   In Fully loaded outbound cost

2. Calculate Number of Actual Hours Worked “Multiply the number of days the employee could potentially be absent by eight hours per day.” Determine Directly Related Annual Costs

   In Fully loaded outbound cost

3. “The fully-burdened labor cost is the full hourly cost to employ a worker for the hours she actually works, which includes wages and the "burden" of the additional costs.” Determine an Employees Wage and Hours Worked

   In Outbound headcount budget

4. Determine an Employees Wage and Hours Worked “Determine an employee's hourly wage, the number of hours per year he is available to work and the number of days per year for which he could potentially be absent from work due to sick days or vacation days.” Calculate Number of Actual Hours Worked

   In Outbound headcount budget

5. Determine Directly Related Annual Costs “Add each cost to determine the labor burden cost of the employee.” Determine Annual Payroll Labor Cost

   In Outbound headcount budget

6. Determine Annual Payroll Labor Cost “Add the annual payroll labor cost to the labor burden cost.” Calculate Fully-Burdened Labor Cost for the Employee

   In Outbound headcount budget