What things do you include in your overhead figure?
All fixed and variable OH, basically every nickel spent that isn't direct labor making or installing product.
How do you figure the number of hours required to make your products?
Software, based on the old AWI cost book and internal time studies.
Do you utilize sq ft pricing, or lineal ft pricing?
No, 12' of 12 1' wide cabinets is significantly more work and material than 12' of 3 4' wide base cabinets
Do you have different shop rates for cabinets, finishing, doors, installation etc ??
Installation yes, other shop areas no,
If I had hundreds of employees or employees dedicated to a specific cell 8 hours a day I would consider it.
Or is the number of hours the total of all of the above?
Yes
How do you handle breaking down each item for clients that want it? For example : How much extra is that one cabinet above the washing machine?
The cost to add 1 cabinet when built with all the other cabinets is less than the cost to add the cabinet after everything is done. The cost to take out 1 cabinet prior to starting increases the setup times, mobilization and other fixed costs on the remaining scope so the cost to take it our is less than you sold it for (internally) and the cost to add before you start another is generally less than the one you had bid.
Do you estimate the number of shop hours for one cabinet??
yes
What thing make up a per hour shop rate?
We have an internal cost and then a burden to develop what we charge ourselves for an hour of time. We then mark that up during the sales process.
For us its all the direct burden plus the hourly OH rate.
See my attached change order spread sheet for an idea on labor and material breakout.
Oops it won't let me upload an excel spreadsheet rename it to an .xlsx after you download