Examples of subcontracting rates

The following data is used in the examples:

Subcontracting rate $50
Subcontracting factor 1.0
Gross output 170
Man hours run Gross output * cycle time (hrs) = 170 * 0.1 = 17
Machine hours run Gross output * cycle time (hrs) = 170 * 0.1 = 17
Man hours setup Setup time (hrs) = 2
Machine hours setup Setup time (hrs) = 2

Unit

Subcontracting costs =

gross output * subcontracting rate

= 170 * 50 = $8,500

Operation rate

Note: 

Only applicable if the Produzione per reparti per Sito parameter in the Componenti software implementati (tccom0100s000) session is set to Non attivo or In preparazione.

Subcontracting costs =

gross output * subcontracting rate * rate factor

= 170 * 50 * 1.0 = $8.500

Man hour rate

Note: 

Only applicable if the Produzione per reparti per Sito parameter in the Componenti software implementati (tccom0100s000) session is set to Non attivo or In preparazione.

Subcontracting costs =

(man hours setup + man hours run) * subcontracting rate

= (2 + 17) * 50 = $950

Machine hour rate

Note: 

Only applicable if the Produzione per reparti per Sito parameter in the Componenti software implementati (tccom0100s000) session is set to Non attivo or In preparazione.

Subcontracting costs =

(machine hour setup + machine hours run) * subcontracting rate

= (2 + 17) * 50 = $950

Hour

Note: 

Only applicable if the Produzione per reparti per Sito parameter in the Attivazione concetto (tcemm4600m000) session is set to Attivo.

Subcontracting costs =

(machine hour setup + machine hours run) * subcontracting rate

= (2 + 17) * 50 = $950