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