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)
*This post is locked for comments
I have the same question (0)