Hours of Labor Defined
A client asked a question about the hours billed on a repair order. Jill is the clients name and Jill’s question is simple. She does not know what the hours of labor indicates in real-time. One hour of time on a clock is 60 minuets, that is easy. Divide 60 minuets by 10.
(60 divided by 10 = 6 minuets or .1 hours of labor)
Labor time on an auto repair invoice is calculated in tenths of an hour (.1 hours = 6 minuets) Some clients never look at the hours of labor, just the total at the bottom.
The time it takes to remove, repair and replace the parts is called a labor operation. Every repair on a vehicle is calculated this way. A labor guide is used to look up the labor for a repair. Every car is different and will have different billable hours for similar tasks. A water pump R/R on a V8 rear wheel drive car is different from a V6 front wheel drive car.
Now let’s look at Jill’s invoice labor. She had an oil change @ .3 hours and a tire rotation @ .2 hours. So the labor for her visit was .5 hours (x) the shop rate = total labor billed.
Now this is how some clients get confused. Jill was at the shop for about an hour but the time on the job was .5 hours not 1.0 or a full hour.
Doing the paper work takes time and some of the time is used just waiting for the oil to drain out. The billed hours, are for the work preformed on the vehicle during the visit at the shop. Billable labor is easier to understand that your phone bill, but if you have questions about labor stop in at the shop anytime during the weekdays.
