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PRODUCTION ORDER MAINTENANCE

  • 5 November 2021
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Hello, i set up an OVHD ID, “payroll” type as variable by labor cost.. factor =”1” 

 and my labor cost per hour is $15 in BOM.

on the testing production ticket: 

2 labor trans.. one last for 1 hour labor cost =$15 ( correct) , but “payroll” ovhd = $4.5 ( expected $15)

 

2nd labor last for around 1 min.. and labor cost = $.25 ( correct) , but  “payroll” ovhd cost =$.08(expected $.25)

 can someone shed some light please?

thank you

Zoey

 

 

 

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Best answer by andrestamour43 9 November 2021, 19:42

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Zoey, 

Look at the cost rate of the Overhead ID “Payroll” if the cost rate is $0.30 then that would result in both the $4.50 and the $0.08 result. See below.

Overhead variable by labor cost = Labor Cost x Overhead Cost Rate per $ x Overhead Factor

First Scenario $4.50 = $15 x $0.30  x 1.00 

Second Scenario $.08 = $0.25 x $0.30 x 1.00 

Hope this helps!

-Andre

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Thank you!

Zoey

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@andrestamour43  hi Andre, 

just got a chance to take a look! yes! cost rate was set up at .30 

Thank you so much, i am trying to exploring into it and see if this is a good erp for us by using the preloaded data.

Zoey

 

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