Fixed-Time Operations

For fixed-time operations (operation types 6 and 7) with batch sensitivity equal to no (N), the PC labor hours and PC machine hours are used in calculating labor and overhead costs.  The labor cost is the labor hours multiplied by the labor rate, divided by the average order quantity.  If the work center is machine paced, the overhead cost is the machine hours multiplied by the machine-based overhead rate plus the labor hours multiplied by the labor-based overhead rate, divided by the average order quantity.  If the work center is labor paced, the overhead cost is equal to the labor hours multiplied by the labor-based overhead rate.

For fixed-time operations (operation types 6 and 7) or JIT operations with batch sensitivity equal yes (Y), the labor hours per batch, the machine hours per batch, and the calculated number of batches are used in calculating labor and overhead costs.  The number of batches is as follows:

The number of batches is always rounded up to the nearest whole number.  If the workcenter is labor-paced, the labor cost per batch and the overhead cost per batch are calculated by multiplying the labor hours per batch by the number of batches and by the labor and overhead rates.  The labor and overhead costs are determined by dividing the results by the average order quantity.  If the workcenter is machine-paced, the labor cost per batch is calculated by multiplying the labor hours per batch by the number of batches and by the labor rate.  The labor cost per unit is determined by dividing the labor cost per batch by the average order quantity.  The overhead cost per batch is calculated by multiplying the machine hours per batch by the number of batches and by the overhead rate.  The overhead cost per unit is determined by dividing the overhead cost per batch by the average order quantity.