USA Labour costing

Nov 28, 2015
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Hi all!

I'm wondering if someone can help.

I'm putting together costs of a product and need help with how to bring in a labour cost.

The product is a 3 day food plan, breakfast lunch and dinner with two snacks delivered once a week with the meals changing every time.

I can calculate the costs of the food and packaging but I am not sure how to account for the production of the food?

Labour for the day is $75 for an 8 hour day of producing the food.

so $9.38 per hour.

If I sell one plan that day, labour is $75, if I make 2 plans thats obviously half and so on. As I don't know what my sales are how do I calculate a price?

Do I just have a guesstimate and say, maybe I will have 20 plans sold, so the labour for each plan is $3.75?

I do have an accounting background, but cost accounting has always been my downfall! Any help or advice would be greatly appreciated!!




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