Quick answer
Divide net labor revenue by billed hours for the same period. If you earned $1,200 in net labor revenue over 8 billed hours, the effective labor rate was $150 per billed hour.
Formula and assumptions
Effective labor rate = net labor revenue ÷ billed hours. Use the same reporting period.
Worked example
480 in net labor revenue across 4 billed hours yields 120 per billed hour.