Detailed computation of Cost Estimate for Direct Labor, Indirect Labor, Overhead etc.

[Former Member]

In KP26 we maintained the following activity price,

Costing Lot size: 10,000

For the routing display (ca03) we maintained the ff:

Base Quantity 10,000 pc

Activity type:

Labor                     1 Hour

FSD                     10,000 pc

FSI                       10,000 pc

Depreciation        10,000 pc

Indirect Labor       10,000 pc

Machine (OOH)    10,000 pc

Scrap                     0

The resulting cost estimate for the above material is.

Question:  How to compute for the cost estimate for each activity type?

Main Material?Parts?Purchase of Products?Direct Labor, Labor Indirect, Fact supplies direct/indirect,depreciation, other overhead cost.

Thanks!

[kamalkumar_biswas2 · Accepted solution]

Hi

In Routing you can define max 6 activity type for cost calculation...

Activity cost is calculated based on activity rate defined in kp26 or if you have plan at kp06 and kp26 then run kspi

In WC you are defining activity type and costing formula for cost calculation which is linked in routing

Example:

1. Activity Direct Lab    Rate = 0.25 per HR

2. Base qty in routing 10000 pc

3. Routing operation where you have defined 10000 hrs for base qty of 10000 pc

then Direct lab cost = 10000/10000*0.25 = 0.25

So now check your settings

Kamal

[Former Member · Accepted solution]

Hello Kamal,

Thanks for your usual support.

Can you answer this?

How did the cost estimate arrived on this?

Direct labor cost is      0.01 (variable cost)

OOH  is 100.01 (variable cost)

KP26

Direct Labor     0.25

OOH                  0.39

Costing Lot size: 10,000

For the routing display (ca03) we maintained the ff:

Base Quantity 10,000 pc

Activity type:

Labor                     1 Hour

FSD                     10,000 pc

FSI                       10,000 pc

Depreciation        10,000 pc

Indirect Labor       10,000 pc

Machine (OOH)    10,000 pc

Scrap                     0

[Former Member · Accepted solution]

Hi Kamal,

The resulting direct labor cost is 0.01

look at my data carefully.

[kamalkumar_biswas2 · Accepted solution]

Hi

Please check your formula in activity Lab in Work Center..

Send screen shot of that otherwise can't calculate properly...

Kamal

[Former Member · Accepted solution]

Labor * Operation quantity / Base quantity / Operation splits

[Former Member · Accepted solution]

[kamalkumar_biswas2 · Accepted solution]

Hi

In your formula you have split factors..so go to OP51 and see the split parameters factor/value then calculate the cost ..definitely will match

You will understand the computation if you see the parameters in OP51

Kamal

[Former Member · Accepted solution]

Hello Kamal,

See screenshot of operation split & operation qty in OP51.

[kamalkumar_biswas2 · Accepted solution]

Hi

What is your base qty in BOM? see in CS03

Your Lab Is matching with  1*10000/1000/1000 as per formula = 0.01

Kamal

[Former Member · Accepted solution]

Base Qty in BOM is 1 pc only

[kamalkumar_biswas2 · Accepted solution]

Hi

Match it with Routing ...in routing you have kept 10000 pc ..always better to keep in both cases 1000 units..accordingly MOB components and routing activity units in min...

Tell your prod guy to correct it

Kamal

[former_member198692]

Hi Athena V.

The resulting cost estimate as shown by you is came from your cost component structure.

If you want see the cost as different with different activity type or main part you must maintain different cost component with attributes in cost component structure (OKTZ) and assign the cost element of your activity type to cost component with attributes.

Regards,

Prasad

[Former Member]

But I already set up in OKTZ.

[Former Member]

My question is how to compute for the cost estimate of DL, overhead etc. based on the given data.