Actual Burden Cost?

Yahoo Archive
1
At 05:23 PM 12/3/2001, you wrote:
>I assumed that "Actual" burden cost was simply actual hours times the
>standard burden rate. Is this how it is calculated? If so, it seems to
>me that it is a bit of an exaggeration portray this number as an actual cost.

Ahh, I see what'ca mean. Yes, the rate is an estimate of sorts; but it's
based on actual hours reported.

You can set the work center to flat rate, which will calculate
employee_hours * fixed_rate regardless of the employee's pay rate. Or
percent, for: employee_hours * employee_rate * percentage.

-Wayne
2
In the table JobOper there is a field called "ActBurCost." Can anyone tell
me how this is calculated? What use is it?

Thanks,

David Kaufman
CNC Metal Products
Wooster OH 44691
3
At 07:08 PM 11/30/2001 -0500, you wrote:
>In the table JobOper there is a field called "ActBurCost." Can anyone tell
>me how this is calculated? What use is it?

Sorry if I'm stating the obvious, but it sounds like you aren't familiar
with the term? Burden is cost accountant talk for all the overhead
expenses in a manufacturing operation. To divvy it up between jobs, an
amount is calculated as either a percentage or hourly amount of the direct
labor charged to a job. At year end, the calculated amount should be close
to the sum of the expenses it represents (employee benees, leases,
depreciation, sales & admin, utilities, etc.)

Vantage has parameters defined for each work center that control how the
amount is calculated. Any labor reported via labor entry or data
collection will calculate a burden amount and tack it on the job. That's
the ActBurCost field. EstBurCost is the estimated amount based on times in
the routers, burden rates on the work center, and labor rates on the
operation codes.

-Wayne Cox
4
I am familiar with the term "burden" with respect to standard or estimated
costs. I have no problem with EstBurCost. When I was first introduced to
Vantage about a year ago, I assumed that "Actual" burden cost was simply
actual hours times the standard burden rate. Is this how it is calculated?
If so, it seems to me that it is a bit of an exaggeration portray this
number as an actual cost.

So, basically, I am asking, "How is this number calculated?"

Thanks,

David Kaufman
CNC Metal Products.


> -----Original Message-----
> From: Wayne Cox [SMTP:wmc@...]
> Sent: Friday, November 30, 2001 7:30 PM
> To: vantage@yahoogroups.com
> Subject: Re: [Vantage] Actual Burden Cost??
>
> At 07:08 PM 11/30/2001 -0500, you wrote:
> >In the table JobOper there is a field called "ActBurCost." Can anyone
> tell
> >me how this is calculated? What use is it?
>
> Sorry if I'm stating the obvious, but it sounds like you aren't familiar
> with the term? Burden is cost accountant talk for all the overhead
> expenses in a manufacturing operation. To divvy it up between jobs, an
> amount is calculated as either a percentage or hourly amount of the direct
>
> labor charged to a job. At year end, the calculated amount should be
> close
> to the sum of the expenses it represents (employee benees, leases,
> depreciation, sales & admin, utilities, etc.)
>
> Vantage has parameters defined for each work center that control how the
> amount is calculated. Any labor reported via labor entry or data
> collection will calculate a burden amount and tack it on the job. That's
> the ActBurCost field. EstBurCost is the estimated amount based on times
> in
> the routers, burden rates on the work center, and labor rates on the
> operation codes.
>
> -Wayne Cox
>
>
>
>
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5
Yes, this number is calculated by the actual BURDEN hours x the burden rate.
This is not based on labor hours, but rather on burden hours. We use our
burden rates to account for the costs associated with the equipment the
employee is running and although they are not always an exact science, they
are 'actuals' based on what your burden costs are, calculated the way you
want, I think everybody calculates burden differently.



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