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