Do rates include labor and machine rates, including variable burden, fixed rates, etc?

The rate information for machinery was determined using total cost information obtained from the manufacturers of the machinery in combination with reasonable depreciation methodologies and reasonable overhead rates for the machinery. The machine rates in DFM Concurrent Costing are different than supplier chargeout rates in that they reflect the actual cost of operating the machinery and do not include any profit margin. These default machine rates would be useful when comparing product designs to determine the most cost effective alternative, but since machine overhead rates vary quite widely between companies, it is doubtful that the default machine rates supplied with the software will match the rates your company is currently paying for machine usage. You may need to edit this database to align with your specific costs if you are verifying quotations, estimating overseas prices or other work based on a different cost structure.