Labor

If the work center is not an outside work center, the Setup and Run Labor Costs are calculated as follows:

Setup Costs

[WCSR * JRSH * (100/WCE)] / ILS = SC

• SC = setup cost
• WCSR = work center set up rate
• JRSH = job route setup hours
• 100/WCE = 100 divided by work center efficiency
• ILS = item lot size

Run Costs (Lbr)

WCRR * JRRH * (100/WCE) = RC

• RC = run costs Lbr
• WCRR = work center run rate Lbr
• JRRH = job route run hours Lbr
• WCE = work center efficiency