Overhead Costs

Overhead costs are calculated for a part by accumulating the overhead costs associated with each effective operation.  For MRP parts, the calculated labor hours per piece are multiplied by labor-based overhead rates, and machine hours per piece are multiplied by machine-based overhead rates of the associated workcenter to give the overhead cost.

Miscellaneous overhead costs for outside processors (see Miscellaneous Costs section) may also be applied if the rate code is related to overhead.