Overhead

(Outside Work Centers do not have overhead costs.)

Fixed Overhead is calculated as follows:

FO = (JRRHM * WCFOR) + [ (JRSH / ILS) + JRRHL] * DFOR

• FO = fixed overhead
• JRRHM = job route run hours Mch
• WCFOR = work center fixed overhead rate
• JRSH = job route setup hours
• ILS = item lot size
• JRRHL = job route run hours Lbr
• DFOR = department fixed overhead rate

Variable Overhead is calculated as follows:

VO = (JRRHM * WCVOR) + [(JRSH / ILS) + JRRHL] * DVOR

• VO = variable overhead
• JRRHM = job route run hours Mch
• WCVOR = work center variable overhead rate
• JRSH = job route setup hours
• ILS = item lot size
• JRRHL = job route run hours Lbr
• DVOR = department variable overhead rate