Man hour cost

Hi All,
Could you please let me know the best practice to calculate man hour cost in mainteance order.
Finance team define the activity price rate using t-code KP26 based on what ? If it is based
on  employee salary posted to a cost center,then at the time of settlement of maintenance order's
man hour cost ,again we are posting the cost to the equipment cost center .May be that equipment
belongs to same cost center where salary was posted ,so we are posting two times same cost .
Can anybody please clarify my doubt ? Thanks in advance .
rgds
Pranjal

Hello
Man hour cost nothing do with salary paid to resource.Its business understanding as per their experience what are the rates resource belonging such as if some one hire from outside firm rate will be more so business decides the rates in accordance with rates which is charged for outside resource.So internal resource may have less rates compare to outside resource.also how much work complex and trunky work involve for activity type will also play imp role while deciding the rates.so summarily its just way how the FICO or Maintenance Manager would like to have rates per resource based on activity type.
Br
Rakesh

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