Planned Job Cost Generation

Material

Planned material costs are accumulated for each purchased item on the product structure once a manufacturing order has been firmed.  The unit cost of each job-controlled purchased item is equal to either the standard cost or purchase order cost depending on the system-wide option chosen.  This unit cost is multiplied by the required production quantity.  For non-job-controlled parts, the cost is equal to the standard cost multiplied by the required production quantity.  Planned material costs do not include overbuys.  For overbuys, if the system-wide option is P (purchase order) the total purchase order cost is prorated over the required quantity.  If the quantity purchased is less than the required quantity, the remaining units are costed at standard.

Labor

Planned labor costs for fixed time operations are equal to the fixed time operation labor hours multiplied by the workcenter labor rate.  Planned labor costs for nonfixed time operations that are labor paced are equal to the standard labor hours per piece multiplied by the required production quantity and workcenter labor rate.  For machine-paced operations, this charge is equal to the fixed-time machine hours on the Routing File.

Overhead

Planned overhead costs are equal to the standard workcenter burden rate multiplied by the standard labor hours per piece and the required production quantity.  For machine-paced operations, this charge is equal to the hours per piece multiplied by the manufacturing order quantity.

Miscellaneous Costs

Planned miscellaneous costs are calculated for each outside operation.  The cost of these operations is equal to either the standard miscellaneous cost or phantom purchase orders, depending on the system-wide option chosen.  For variable miscellaneous costs with the standard pricing option, the miscellaneous cost is multiplied by the required production quantity.  For the purchase order pricing option, the miscellaneous cost is multiplied by the purchase order ordered quantity.

Additional Job Charges

Planned job charges include any additional planned job charges (for example, engineering charges).  These charges are defined by the user.