Labor Costs

The following labor calculations are cross-referenced to fields on the Job Cost Report.  Labor and overhead costs are based on labor requirement (LR) records with workcenter numbers less than 900.  These records are collapsed into one cost record on the Labor Cost File for each job/part/workcenter.

Planned Labor

Quantity

·     Fixed Time Operation: If the operation type is 6 or 7, then QUANTITY is fixed time operation labor hours on the Routing File.

·     Non Fixed Time Operation: If the operation is labor paced, then

QUANTITY = Hours Per Piece times MO Quantity times Number of People (if a crew is required).

If the operation is machine paced, then

QUANTITY = Hours Per Piece times MO Quantity times (Number of People Required divided by Number of Machines).

Total Cost

TOTAL COST is calculated by the Job Cost Report Program using the accounting labor rate on the Workcenter File.

Actual Labor

Quantity

QUANTITY = Sum of Labor Hours Reported on the LR File.

Total Cost

If the actual labor costing option on Reference File category D52 is E (employee) then

TOTAL COST =  Time Charged on the Shop Floor Audit Trail times Employee Pay Rate on the Employee File.

If the actual labor costing option on Reference File category D52 is S (standard) then

TOTAL COST is calculated by the Job Cost Report Program using the accounting labor rate on the Workcenter File.

Projected Labor

Quantity

·     Fixed Time Operation:  QUANTITY is equal to the greater of labor hours reported on LR or planned labor hours, unless the MO status is C or Z, in which case QUANTITY is equal to labor hours reported.

·     Non Fixed Time Operation:  If the operation is labor paced, then

QUANTITY = (Hours Per Piece times (MO Quantity minus LR Quantity) times Number of People if a crew is required) plus Labor Hours Reported on LR

If the operation is machine paced, then

QUANTITY = (Hours Per Piece times (MO Quantity minus LR Quantity) times (Number of People divided by Number of Machines)) plus Labor Hours Reported on LR

Total Cost

TOTAL COST is calculated by the Job Cost Report Program as follows:  If the actual quantity is greater than or equal to the projected quantity then

TOTAL COST = Actual Total.

Otherwise,

TOTAL COST = Actual Total Cost plus ((Projected Quantity minus Actual Quantity) times Standard Unit Cost).