how do i determine a standard hourly cost
Divide the annual overhead costs by the number of billable hours or production units to get the overhead cost per hour or per unit. For example, if your overhead costs and billable hours average $10,000 and 2,000 per year, respectively, then your overhead rate is $10,000 divided by 2,000, or $5 per hour.hen, divide the result by the number of full-time hours per week to get the hourly rate. Add a benefit percentage to get the total direct hourly labor rate. For example, if a customer service representative gets $26,000 per year, his weekly salary is $26,000 divided by 52, or $500.