C1, C2 (Variable and Fixed Machine Overhead)

The system calculates C1 and C2 costs only if you have set the manufacturing constants for the branch/plant to include variable and fixed machine overhead in the cost. You must also specify whether you want the system to calculate machine overhead costs from manually entered rates in the Work Center Master table (F30006) or as a percent of machine run costs.

Parent variable and fixed machine overhead cost is the sum of all variable and fixed machine overhead calculations for the item's routing.

Calculating variable machine overhead costs requires these calculations:

• (Machine variable labor overhead percent) ÷ (percentage conversion) × (machine run rate) = (variable machine overhead rate)

• ((Machine run hours) ÷ (accounting cost quantity)) ÷ ((time basis code) ÷ (operation yield percent)) = (variable machine overhead run hours)

  Note: (Release 9.2 Update) Divide the machine run hours by the accounting cost quantity only if the accounting cost quantity is not zero and time basis is fixed (time basis code is 0).

• (Machine variable overhead cost) = (variable machine overhead run hours) × (variable machine overhead run rate)

Calculating fixed machine overhead costs requires these calculations:

• (Machine fixed labor overhead percent) ÷ (percentage conversion) × (machine run rate) = (fixed machine overhead rate)

• ((Machine run hours) ÷ (accounting cost quantity)) ÷ (time basis code) ÷ (operation yield percent) ÷ (primary UOM conversion factor) = (fixed machine overhead run hours)

  Note: (Release 9.2 Update) Divide the machine run hours by the accounting cost quantity only if the accounting cost quantity is not zero and time basis is fixed (time basis code is 0).

• (Machine fixed overhead cost) = (fixed machine overhead run hours) × (fixed machine overhead run rate)