Step 0000 is always required because this record (from the WO3 Work Order Operation Detail file) holds the standard and actual material costs, as well as the labor and overhead costs associated with a step 0000 operation. Standard costs are established with the acceptance of a firm-planned work order. Actual costs are established with the material issue and labor transaction entries after the work order release.
The following formula can be used to calculate the standard labor cost.
Std Labor Cost = (Hourly Labor Rate x Planned Hours) +
(Planned Piece Qty x Piece Rate/Planned Cost Divisor)
Standard Labor Cost Example
|
SHER
|
0001/0000
|
9.00
|
4.167
|
50
|
20
|
5
|
237.50
|
|
FAB
|
0001/0010
|
15.00
|
33.333
|
100
|
30
|
20
|
650.00
|
|
ASSMB1
|
0001/0020
|
9.00
|
3.333
|
400
|
5
|
1
|
2030.00
|
|
ASSMB2
|
0002/0030
|
7.50
|
6.000
|
200
|
0
|
1
|
45.00
|
|
ASSMB3
|
0003/0040
|
0.00
|
20.000
|
100
|
20
|
10
|
200.00
|
|
Total Direct Labor Costs
|
|
|
|
|
|
3162.50
|
The following formulas can be used to calculate the fixed and variable overhead for labor.
Fixed Overhead for Labor = (Hourly Fxd Overhead Rate x Std Hrs for Step) +
(Computed Labor Cost for Step x Fixed Overhead% of Cost)
Var. Overhead for Labor = (Hourly Var Overhead Rate x Std Hrs for Step) +
(Computed Labor Cost for Step x Var. Overhead% of Cost)
Overhead Calculations Example
The following overhead calculations are for noncrew labor transactions.
|
SHER
|
FXD
|
0001/0000
|
8.00
|
4.167
|
237.00
|
6.00
|
47.59
|
|
|
VAR
|
|
4.00
|
4.176
|
237.50
|
3.00
|
23.79
|
|
FAB
|
FXD
|
0001/0010
|
4.00
|
33.333
|
650.00
|
0.00
|
133.33
|
|
|
VAR
|
|
6.00
|
33.333
|
650.00
|
0.00
|
200.00
|
|
ASSMB1
|
FXD
|
0001/0020
|
15.00
|
3.333
|
2030.00
|
7.50
|
202.25
|
|
|
VAR
|
|
0.00
|
3.33
|
2030.00
|
0.00
|
0.00
|
|
ASSMB2
|
FXD
|
0002/0030
|
0.00
|
6.000
|
45.00
|
6.50
|
2.93
|
|
|
VAR
|
|
0.00
|
6.00
|
45.00
|
10.00
|
4.50
|
|
ASSMB3
|
FXD
|
0003/0040
|
0.00
|
20.00
|
200.00
|
0.00
|
0.00
|
|
|
VAR
|
|
5.50
|
20.00
|
200.00
|
6.50
|
123.00
|
|
Total Labor Overhead FXD
|
|
|
|
|
386.10
=====
|
|
|
VAR
|
|
|
|
|
|
351.29
=====
|
Hourly and piece rates are defined in Operation Code Maintenance.
For more information, see:
Standard Costs Formulas
Operation Code Maintenance
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