Miscellaneous Costs

Miscellaneous costs are used to specify the costs of outside processing operations.  The outside processors are identified by miscellaneous cost workcenters.  (Miscellaneous cost workcenters have workcenter numbers that are greater than 900.)  For each part/workcenter combination, you specify what costs are incurred by the part as it goes through the outside process.  Multiple cost elements may be used.  The cost elements are defined on Reference File category C17.  The user also defines a rate code to indicate how to calculate and apply the total miscellaneous cost during Product Costing.  Rate codes can be any of the following:

M   Material cost - cost per unit

L    Labor cost - cost per unit

O    Overhead cost - cost per unit

X    Material cost - fixed cost per order

Y    Labor cost - fixed cost per order

Z    Overhead cost - fixed cost per order

C    Memo charge

Fixed costs per order are divided by the average order quantity for the part to obtain a cost per unit.

When this-level costs are calculated, miscellaneous costs are applied based upon the rate codes.  If the rate code is M, L, or O (cost per unit), the cost is applied to material, labor, or overhead.  If the rate code is X, Y, or Z, (fixed cost per order), the cost is divided by the average order quantity of the part and is applied to the material, labor, or overhead.  If the rate code is C (memo charge), the cost is not used in calculating this-level costs.