On the job costing reports (listed in the See Also link above), the planned cost consists of these cost figures:
If material is Per Unit: (job qty Released * material qty per assembly / (1 - scrap factor)) * material unit cost
If material is Per Lot: (material qty per assembly / (1 - Scrap Factor)) * material unit cost
Material overhead is calculated the same regardless of the material's type.
Fixed Material Overhead: Material Cost * material Fixed Overhead rate
Variable Material Overhead: Material Cost * material Variable Overhead rate
For each operation, the system calculates the planned setup hours and then the planned setup cost and labor overhead associated with setup.
Setup Time: (Setup Hours / Efficiency)
Setup Cost: Setup Time * Setup Rate
Fixed Setup Overhead: Setup Time * operation Fixed Labor overhead rate
Variable Setup Overhead: Setup Time * operation Variable Labor overhead rate
For each operation, the system calculates the planned run time and then the planned run cost and run labor overhead.
Labor Time: job quantity Released * (operation Labor Hours Per Piece * Quantity Resources)
Run Cost: Labor Time * operation Run Rate
Fixed Overhead: Labor Time * operation Fixed Labor overhead rate
Variable Overhead: Labor Time * operation Variable Labor overhead rate
For each operation, the system calculates the planned machine time and then the planned machine overhead costs:
Machine Time: job quantity Released * (operation Machine Hours Per Piece / Efficiency)
Machine Fixed Overhead: Machine Time * operation Fixed Labor overhead rate
Machine Variable Overhead: Machine Time * operation Variable Labor overhead rate