Variable Material/Variable Material Overhead Rate

Enter the variable material overhead rate for the current item or job materials. For example, if you apply a 2% rate, the value you must enter in this field is "0.020."

Variable costs fluctuate according to volume changes. Manufacturing supplies and freight charges are examples of variable costs. These costs are applied to material as you issue the materials.

Note: Material overhead rates are used when applying overhead to material costs, as opposed to labor costs. Fixed and variable labor overhead rates can be entered on the Department form. The system applies material, labor, and machine overhead rates according to the criteria entered in the Overhead Basis field on the Work Centers form (Scheduling tab).

This field defaults from the Product Codes form, but it may be overwritten on the Production Schedule Item Materials or Production Schedule Release Materials forms.

Once entered, this field displays the variable material overhead rate for the current item.

On the Estimate Materials form, you can only update this field when the Rev Track field on the Items form is selected. If the Rev Track field is selected, you can update this field via an ECN.