How standard costs are calculated

Standard costs are derived from the charge rate, which serves as a helpful guide as to what your staff actual costs need to average at or be valued under. 

Standard cost formula

Charge per unit / (1+(Target profit / 100)) = Standard cost per hour

E.g.

Target profit = 25% 

Charge rate per unit = $100 

Then:

$100 / (1 + (25/100)) = $80 

The target profit is defined in your financial controls. By default, Synergy sets the target profit to 25%.