For each cost center, the Machine standard cost can include:
•the direct costs of the workshop (Shop direct costs option),
•the economic or fiscal depreciation (Depreciation option),
•the indirect costs for a machine (Cost center overhead option).
The sum of the selected costs can be multiplied by the overhead rates for machines, plant and/or company.
For each cost center, the Labor standard cost can include:
•the direct labor costs (Direct costs option),
•the indirect labor costs (Cost center overhead option).
The sum of the selected costs can be multiplied by the overhead rates for labor, plant and/or company.
Standard routing costs
The standard machine and labor costs for the routing operations are determined by multiplying the machine and labor times for a standard lot by the standard hourly costs corresponding to the cost center of the work center in which the operation is taking place. The standard costs of a routing are equal to the sum of the standard costs of the operations, increased by a average scrap rate for a standard lot (the average scrap rate is calculated from the fixed scrap and from the proportional rate of scrap defined in the Routing window). The fixed and variable standard costs are equal to the sum of all fixed and variable costs of operations according to the selected options.
Standard costs of the manufactured items
The standard costs of the manufactured items are defined according to the chosen option:
•the direct labor costs and the shop costs (Direct costs option),
•the economic or fiscal depreciation (Depreciation option),
•the indirect machine and labor costs (Cost center overhead option).
The sum of the selected costs can be multiplied by the overhead rates for machines, plant and/or company.
The fixed and variable standard costs correspond to the sum of the fixed and variable costs with the selected options.