This is how we are currently set up:
Labor (setup and run time) is entered on Routings. This allows us to do Estimates.
Actual labor is captured on time sheets and entered as a type L "Material" (the labor part has a BOM quantity of 0, we just have it there so we don't get the "part is not on BOM do you want to add it" warning).
Materials are on BOM as well, with expected/average quantity so we can do estimates as well as to ensure adequate inventory once a WO is created.
Putting the labor on the BOM is problematic because setup time cannot be properly accounted for unless you calculate it for the WOBOM every time. If we were to calculate the BOM labor from the Routing, unless the labor was then removed from the Routing, any Estimate made for the part would have twice the labor cost on it.
We would still prefer to do Estimates within DBA, as it makes sense - all the info is already there. We do have a system for estimates in Excel, for new items we've never made and are quoting, so we don't have to create items that we may never build. If/when we get the job we use that to build the Routing and BOM in DBA.
Keep the ideas coming