Total Variable Overhead (Labor)

The accumulated variable labor overhead charges for this operation display. If you selected Labor as the Overhead Basis on the Shop Floor Control Parameters form, the system calculates this accumulated amount by multiplying the Total Hours (from the Unposted Job Transactions form) by the variable overhead rate from the operation.

Note: When backflushing labor, the total variable overhead (Lbr) cost is increased by the planned labor hours multiplied by the variable overhead labor rate from the operation.