Standard cost and Setup labor time

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Posted on by Community Member Microsoft Employee

When I do a standard cost Rollup of an item. It's including the labor time and the full setup time from that item's routing (not dividing by standard or average qty.) This makes the labor charges far more expensive than reality.

the item is fifo periodic (standard cost)
the routing has a labor time of 2 minutes, and a setup time of 15 minutes
the rolled up standard costs calculates 17 minutes of labor.
both standard qty and average qty are set to 100

Note: the same thing happens for BOMs with fixed qty items (the entire qty gets calculated into the standard cost instead of dividing it with the standard or average qty)

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Community Member Microsoft Employee on at

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Re: Re: Standard cost and Setup labor time

Thank you Richard,
That was it. I had forgotten about that setting. Is there a similar setting to do this for fixed quantities on BOMs?
You've saved me a lot of time.
Thanks again.
Richard Whaley 25,195 on at

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Re: Standard cost and Setup labor time

Under Manufacturing Setup, open the Costing Preference Defaults window and check make sure the Prorate Setup Time box is checked. Then in the field to the right, select the Prorate Quantity (Standard Quantity field contents or Average Quantity field contents).

If that is already set...post back with the current settings.