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ICCIFP Community Forum : General Industry Discussion |
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Subject : Calculating Sales Per Manday..
10/26/2016 04:48:20 PM
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| Amy McEldowney, CPA |
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Posts: 1
Location: West Chester, PA |
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Hello! We are an HVAC contractor that performs routine service as well as large residential and commercial installation projects. Installation jobs often include field labor, shop labor, and delivery labor. What is your opinion on including all three labor categories in calculating man days vs. only the actual field labor? Thanks! -Amy |
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Subject : Re:Calculating Sales Per Manday..
10/26/2016 05:11:48 PM
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| ANTHONY BURRUANO |
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Posts: 1
Location: |
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Amy, the problem isn't that all three categories should not be costed either for service or a job, they should, the issue is in combining them for a job (delivery, field, and shop) all three have different standard "worked hour cost" rates (payroll, plus employer payroll taxes, Health/life/other insurance benefits, workman compensation cost, tool/uniform allowances, employer pension costs: divided by worked hours (paid hours including OT as 1 worked hour, less vacation, holiday, personal days, sick days, training days, administrative days)divided all costs by net worked hours to arrive at worked hour cost by category). So I would post all three...and possibly four if installers are a different pay rate in general that service technicians. [email protected] 856.770.1400 ext 328 Tony Burruano |
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Subject : Re:Calculating Sales Per Manday..
10/26/2016 05:11:49 PM
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| Jason L Lane CMA CCIFP |
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Posts: 1
Location: |
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If you're calculating "Sales per Man Day", and the goal of your report is to capture time spent on projects, then I would include only the direct labor that is costed to your job(s).
If your shop & delivery labor are indirect costs in your cost system, then I would leave them out of your calculation. I assume they would be accounted for in your overhead allocations and are part of your overall direct labor cost.
Regards,
Jason |
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Subject : Re:Calculating Sales Per Manday..
10/26/2016 05:37:43 PM
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| David Reece Helms, CCIFP, CPA |
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Posts: 1
Location: |
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Amy, are you tracking man days to compare to estimated?
If so, were the shop and delivery included in the estimated man days?
Otherwise I would think you would want to count all labor.
Thanks,
David Helms |
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Subject : Re:Calculating Sales Per Manday..
10/26/2016 07:38:17 PM
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| Mary Davolt, CPA, CCIFP |
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Posts: 1
Location: |
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Amy,
looks like depending on your goal your answer can vary. I read the answers and depending on the intent they are all correct.
i read the question differently. The topic says calculating sales per man day. If you are trying to come up with an amount to compare what you should be generating in revenue/billing per man day you could use just the field or all. If there are periods with alot of shop time designing/fabricating the HVAC system before you install it, using all may not be what you want to do.
If this or the other answers arent what you are looking for you may need to give a little more information as to what you want to use this calculation for.
Mary |
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Subject : Re:Calculating Sales Per Manday..
10/27/2016 10:00:42 AM
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| Robert Litzner |
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Posts: 1
Location: |
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To start if you are calculating man days could hours be used instead.
As for the labor categories, any labor to construct the item including shop and install I would included. Delivery could be but is not a direct cost to construct plus you may want to measure that cost alone. All other answers were valid as well. Good Luck |
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