This appendix contains these topics:
These are the detail calculations for each cost type (B1 - C4). This appendix also gives examples on the calculations.
Direct Labor Hours / Time Basis * Crew Size * Direct Labor Rate = Direct Labor Cost
Setup Labor Hours / Accounting Cost Quantity * Setup labor Rate = Setup Labor Cost
Machine Run Hours / Time Basis * Machine Run Rate = Machine Run 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
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
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
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
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
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
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
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