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SAP Product Costing Target Cost

Hi Experts,

This is regarding Target cost column in KKF6N.

I am checking KKF6N Cost tab for one material

There are 3 columns. Target Cost, Actual Cost and Variance.

I understoo entire process for Actual cost and its working fine.

But for Target cost i am not sure from where the values are flowing. For example i have maintained activity type rate for Labour hour as 100 so when we put 44 hours in actual cost it is coming as 4400, but in Target cost column it is coming as 2250. I am confused as how is this coming because this varince will be posted and values will posted wrong at variance calculation.

Please guide



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