Cost Components by Work Center

To enable you to track variances not only on the cost-component level, but also on the work-center level, you can enter different cost component values for different work centers. This method enables you to track cost variations in each work center even if other inputs to the manufacturing process, for example items, routing, bill of material, work center rates, shop floor transactions, total costs, and total variance are the same.

To identify variances by cost center, you define different values for cost components in the work centers that you use on a routing. You can track and analyze material and labor costs by work center. The system enables you to review the net-added unit cost at each routing operation step on the Work With Work Center Cost form for the cost component that you select. For labor-related costs, you can access the Work With Cost Calculation form to display the calculations that the system uses to derive the net-added unit cost at each routing step; however, this information is not available for material costs.