No.

of days
Work Hrs
Per Day
Tot. Hrs
A * B =
No. of
Workers
Tot. Man Hrs
C * D Tot. Labor Cost
Man Hour Rate:
F / E
A B C D E F G
7 8 56
3 168
15,120 $ 90 $
Multiply the number of days by the number of working hours per day to calculate the total
number of hours. In our example, the number of hours is 7 days x 8 hours/day = 56 hours.
Multiply hours by the number of workers to compute a man-hourvalue. In our example, man-
hours needed to complete the project is 56 hours x 3 men = 168 man-hours.
Divide the total labor cost by the man-hours value calculate the man-hour rate. In this example,
the man-hourcostsis $15,120 / 168 man-hours = $90 per man-hour.