Hello all
We have calculated the item cost price for a manufactured item; however, after performing adjustments on the costing sheet, the customer indicates an overhead estimation is not displayed for level 2.
This was the original cost price estimation, from a previous cost version, executed before editing the cost sheet. Overhead estimations are displayed for level 1 and 2. Note: Overhead is defined as a surcharge percentage, based on a cost group of type Direct labor.


When talking about BOM calculations, we understand level 2 refers to a Sub-BOM, consumed as a component of the materials required to produce a finished good. But when we display the Tree structure, all items appear on the same level, as well as the labor components and surcharges:

So how is the system identifying level 1 items and level 2 items? We do know some of the BOM components are Co-products, though, so perhaps these are the level 2 items?
This is how overhead is being calculated now, with no cost estimation for level 2:

Our question is the following: if calculation basis for the overhead is a cost group of type Direct labor, what does level 2 refer to? And how do we get the system to calculate an overhead surcharge for level 2?