Effective labour rate calculation
A base rate is a unit price for labor only as material costs can vary from project to project and are best worked out by your suppliers. Base rates vary with your crew size and the rates that each member of your team earns per hour. This cost of labor is also used to calculate the cost of ending inventory and the cost of goods sold under a standard costing system. Price basis . This is the price per hour that is charged to a customer for services rendered.