I have two operations in the job
First operation estimated hour is 0.02 Std format is Hours/Pieces
Second operation estimated hour is 0
First operation resource group show below
0.02 * 773 = 15.46
but its shows 3.24. I just wanted to know how its calculating the estimation when we setup the Split Burden in the resource group.
What is the Job quantity for?
Just 1 Qty
Any chance you are standard cost and that is where the value is coming from?
We are using standard costing, I do not know how this value is calculating. I have changed into Burden = Labor in the resource group and tested one job its calculating correctly as 15.46 but if we put Split burden in resource group calculated the estimation different as 3.25
What is the Burden Cost on the Standard Cost for that part?
FG Part burden is $3.24.
but,
• Job Estimate and Actual Burden Setup Cost Total = Burden Hours x Costing Setup Burden Rate
• Job Estimate and Actual Burden Production Cost Total = Burden Hours x Costing Production Burden Rate
Correct, for estimates. The Production Detail Report you gave a screen shot of is what the part was received into inventory at. If there was a variance, it should have posted to the variance account.
I am not the best with Standard Costing, but if you set a standard, I would expect that to drive estimates. If you are finding that the estimate in the method is consistently not correct, I would roll the cost.
@sk.patchai , I would go into a test environment and roll the cost on that part to something crazy, like $1000, and then look at the estimate to better understand how estimates are done with standard costing.
