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
Best answer by andrestamour43
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
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
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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