G Routing Cost Type Calculations

This appendix contains these topics:

These are the detail calculations for each cost type (B1 - C4). This appendix also gives examples on the calculations.

G.1 B1 Direct Labor

Direct Labor Hours / Time Basis * Crew Size * Direct Labor Rate = Direct Labor Cost

G.1.1 Example:

1.0 Direct Labor Hours / 1 Time Basis * 1.0 Crew Size * 5.25 Direct Labor Rate = 5.25 Direct Labor Cost

G.2 B2 Setup Labor

Setup Labor Hours / Accounting Cost Quantity * Setup labor Rate = Setup Labor Cost

G.2.1 Example:

1.00 Setup Labor Hours / 100 Accounting Cost Quantity * 4.25 Setup Labor Rate = .0425 Setup Labor Cost

G.3 B3 Machine Run

Machine Run Hours / Time Basis * Machine Run Rate = Machine Run Cost

G.3.1 Example:

1.00 Machine Run Hours / 1 Time Basis * 3.25 Machine Run Rate = 3.25 Machine Run Cost

G.4 B4 Labor Efficiency Cost

Direct Labor Hours / Time Basis * Crew Size = Factored Labors Hours

Work Center Efficiency / 100 Percentage Conversion * Factored labors Hours = Factored Efficiency

Factored Labors Hours - Factored Efficiency * Direct Labor Rate = Labor Efficiency Cost

G.4.1 Example:

1,000 Direct Labor Hours / 1 Time Basis * 1.0 Crew Size = 1.0000 Factored Labor Hours

50.00 Work Center Efficiency / 100 Percentage Conversion * 1,0000 Factored Labor Hrs = .5000 Factored Efficiency

1.0 factored Labors Hours - 5000 Factored Efficiency * 5.25 Direct Labor Rate = 2.6250 Labor Efficiency Cost

G.5 C1 Machine (Mach) Variable (Var) Overhead (O/H) Cost

Var. Mach.O/H Percent / 100 Percentage Conversion * Machine Run Rate = Var. Mach. O/H Rate

Machine Run Hours / Time Basis = Var. Mach. O/H Run Hours

Var. Mach. O/H Run Hours * Var. Mach. O/H Rate = Var. Mach. O/H Cost

G.5.1 Example:

125.00 Var. Mach. O/H Percent / 100 Percentage Conversion * 3.25 Machine Run Rate = 4.06 Var. Machine O/H Rate

1.00 Machine Run Hours / 1 Time Basis = 1.0000 Var. Machine O/H Run Hours

1.00 Var. Mach. O/H Run Hours * 4.06 Var. Machine O/H Rate = 4.0625 Var. Mach O/H Cost

G.6 C2 Machine Fixed Overhead Cost

Fixed Mach O/H Percent / 100 Percentage Conversion * Machine Run Rate = Fixed Mach O/H Rate

Machine Run Hours / Time Basis = Fix Mach. O/H Run Hours

Fix Mach. O/H Run Hours * Fixed Mach O/H Rate = Fixed Mach. O/H Cost

G.6.1 Example:

105.00 Fixed Mach. O/H Percent / 100 Percentage Conversion * 3.25 Machine Run Rate = 3.41 Fixed Machine O/H Rate

1.00 Machine Run Hours / 1 Time Basis = 1.0000 fixed Machine O/H Run Hours

1.0000 Fixed Mach. O/H Run Hours * 3.41 Fixed Mach O/H Rate = 3.4125 Fixed Machine O/H Cost

G.7 C3 Labor Variable Overhead

Var. Labor O/H Percent / 100 Percentage Conversion * Direct Labor Rate = Var. Labor O/H Rate

Direct Labor Hours / Time Basis * Crew Size = Factored Labor Hours

Work Center (WC) Efficiency / 100 Percentage Conversion * Factored Labor Hours = Factored Efficiency

Factored Labors Hours - Factored Efficiency = WC Efficiency Hours

Factored Labors Hours + WC Efficiency Hours * Var. Labor O/H Rate = Direct Labor O/H Cost

Var. Labor O/H Percent / 100 Percentage Conversion * Setup Labor Rate = Var. Labor O/H Rate

Setup Labor Hours * Var. Labor Hours O/H Rate / Accounting Cost Quantity = Setup Labor O/H Cost

Direct Labor O/H Cost + Setup labor O/H Cost = Var. labor O/H Cost

G.7.1 Example:

60.00 Var. Labor O/H Percent / 100 Percentage Conversion * 5.25 Direct Labor Rate = 3.15 Var. Labor O/H Rate

1.00 Direct Labor Hours / 1 Time Basis * 1.0 Crew Size = 1.0000 Factored Labor Hours

50.00 Work Center Efficiency / 100 Percentage Conversion * 1.0000 Factored Labor Hrs = .5000 Factored Efficiency

1.0000 Factored Labors Hours - .5000 Factored Efficiency = .5000 WC Efficiency Hrs.

1.0000 Factored Labors Hours + .5000 WC Efficiency Hrs * 3.15 Var. Labor O/H Rate = 4.7250 Direct Labor O/H Cost

60.00 Var. Labor O/H Percent / 100 Percentage Conversion * 4.25 Setup Labor Rate = 2.55 Var. Labor O/H Rate

Setup Labor Hours * 2.55 Var. Labor O/H Rate / 100 Accounting Cost Quantity = .0255 Setup labor O/H Cost

4.7250 Direct Labor O/H Cost + .0255 Setup labor O/H Cost = 4.7505 Var. Labor O/H Cost

G.8 C4 Labor Fixed Overhead

Fixed labor O/H Percent / 100 Percentage Conversion * Direct Labor Rate = Fixed Labor O/H Rate

Direct Labor Hours / Time Basis * Crew Size = Factored Labors Hours

Work Center Efficiency / 100 Percentage Conversion * Factored labors Hours = Factored Efficiency

Factored labors Hours - Factored Efficiency = WC Efficiency Hours

Factored labors Hours + WC Efficiency Hours * Fixed Labor O/H Rate = Direct Labor O/H Cost

Fixed Labor O/H Percent / 100 Percentage Conversion * Setup labor Rate = Fixed Labor O/H Rate

Setup labor Hours * Fixed labor O/H Rate / Accounting Cost Quantity = Setup Labor O/H Cost

Direct Labor O/H Cost + Setup labor O/H Cost = Fixed labor O/H Cost

G.8.1 Example:

50.00 Fixed Labor O/H Percent / 100 Percentage Conversion * 5.25 Direct Labor Rate = 2.63 Fixed labor O/H Rate

1.00 Direct labor Hours / 1 Time Basics * 1.0 Crew Size = 1.00 Factored labor Hours

50.00 Work Center Efficiency / 100 Percentage Conversion * 1.0000 Factored Labors Hrs = .5000 Factored Efficiency

1.0000 Factored Labors Hours - .5000 Factored Efficiency = .5000 WC Efficiency Hrs.

1.0000 Factored Labors Hours + .5000 WC Efficiency Hours * 2.63 Fixed Labor O/H Rate = 3.9375 Direct Labor O/H Cost

50.00 Fixed Labor O/H Percent / 100 Percentage Conversion * 4.25 Setup Labor Rate = 2.13 Fixed Labor O/H Rate

1.00 Setup Labor Hours * 2.13 Fixed Labor O/H Rate / 100 Accounting Cost Quantity = .0213 Setup labor O/H Cost

3.9375 Direct labor O/H Cost + .0213 Setup labor O/H Cost = 3.9588 Fixed labor O/H Cost