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How to calculate manpower cost with respect to production
From India, Nagpur
Girish,
For eg. I am involving 2 workmen for 8 hrs. and there salary is say 100 each. And they are producing 80 kgs. Production each in the 8 hrs then the cost of prodtn. will be =200/160=1.25 per kg. production.

From United States
I have a suggestion.
I consider that your unit of Production is Metric Ton.
Suppose your finally finished production in a month is say 800 MT ------------------------- (A)
If a worker works for 8 hrs = 1 manday and for 26 days = 26 mandays.
Suppose you have deployed 10 workers / day i.e. 8 mandays daily and for 26 days = total 208 mandays for that prod ------(B)
I assume that a worker gets wages Rs. 200/-per day i.e. for 208 mandays total wages would be Rs. 41600/- ------(C)
Then if Rs. 41600/- is the manpower cost for 800 MT then, formula will be (C) / (A) = manpower cost /per ton
Rs. 41600/- / 800 MT = Rs. 52/- will be the cost for per worker per MT production.
In other words, For producing 1 MT produciton, the manpower cost will be Rs. 52/-
I hope you have understood this...
Regards,

From India, Sholapur
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