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overhead calculation in production order activity


during month end, for production order or process order, i need to carry out the activity in this order - overhead calculation -> wip -> variance -> settlement.

1) may i know why overhead must be the first step?

2) for plan OH, it is to affect the costing run to get the fnished goods price. may i know for actual OH kgi2/co43, what is the implication after run this actual OH?


Former Member


$1200 and $2500 will get after KSII run abduction based on these actual activity cost when you run KGI2 it wil give 74 as your actual OH cost.

Hope you understood.


Srinivas Salpala

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