About Planned Costs on a Job

On the job costing reports, the planned cost consists of the cost figures described in this topic.

Material Cost

If material is Per Unit: (job qty Released * material qty per assembly / (1 - scrap factor)) * material unit cost

If material is Per Lot: (material qty per assembly / (1 - Scrap Factor)) * material unit cost

Material Overhead Cost

Material overhead is calculated the same regardless of the material's type.

Fixed Material Overhead: Material Cost * material Fixed Overhead rate

Variable Material Overhead: Material Cost * material Variable Overhead rate

Setup Cost and Overhead

For each operation, the system calculates the planned setup hours and then the planned setup cost and labor overhead associated with setup.

Setup Time: (Setup Hours / Efficiency)

Setup Cost: Setup Time * Setup Rate

Fixed Setup Overhead: Setup Time * operation Fixed Labor overhead rate

Variable Setup Overhead: Setup Time * operation Variable Labor overhead rate

Run (Labor) Cost and Overhead

For each operation, the system calculates the planned run time and then the planned run cost and run labor overhead.

Labor Time: job quantity Released * (operation Labor Hours Per Piece * Quantity Resources)

Run Cost: Labor Time * operation Run Rate

Fixed Overhead: Labor Time * operation Fixed Labor overhead rate

Variable Overhead: Labor Time * operation Variable Labor overhead rate

Machine Overhead

For each operation, the system calculates the planned machine time and then the planned machine overhead costs:

Machine Time: job quantity Released * (operation Machine Hours Per Piece / Efficiency)

Machine Fixed Overhead: Machine Time * operation Fixed Labor overhead rate

Machine Variable Overhead: Machine Time * operation Variable Labor overhead rate