Can someone help clarify the relationship between crew size and labor?
I’ve done research and skimmed over the job costing ref guide and found that crew size impacts estimated labor cost - NOT labor nor applied labor.
If I was in a standard costed environment, I would think applied labor and burden is calculated as labor/burden rate from the resource group x number of hours. Credit WIP and Debit Applied Labor/Burden.
However, when I set my employee up with $0 labor rate, it didn’t take the labor rate from the resource group tied to the job operation… but when I changed the employee’s labor rate to $40, there was a labor transaction on the IWR. So, is labor truly coming from the employee record or resource group for standard costing?
If crew size doesn’t impact labor, would it be best to make my labor rate on the resource group match my crew size manually…
Good Start. 138 references to crew size, I am sure it is as clear as mud…
I asked a friend
The labor rate for standard costing is determined through the Costing Labor Rates defined for each resource or resource group. These rates represent the estimated cost of labor associated with running each resource or resource group and are used to calculate the estimated labor cost for job estimates
Here’s a breakdown of how these rates are utilized and where they originate:
Definition: Costing Labor Rates define the rate at which the estimated labor costs are calculated against each resource or resource group used on an operation1 . Separate rates can be defined for Setup Time and Production Time
Usage: These rates are multiplied against the estimated setup hours, estimated production hours, and Crew Size values to determine the final estimated labor cost on a job method, which contributes to the standard cost of a manufactured part
Location: You define the Costing Labor Rates on both the Details card of Resource Group Maintenance and the Resources - Detail card within Resource Group Maintenance6 … You can also override these rates on specific job methods within Job Entry.
So I am guessing that your labor rates are not setup in your resource group,that’s why your seeing it coming from the employee?
Edit, I found this in the reference
If a Labor Rate is defined on a resource, this value is used for the estimated rate.
If a Labor Rate is not defined on a resource, the rate defined on the resource group is used instead.
If a Labor Rate is defined on a job or quote method, this value is used instead of the resource or resource group rate.
So I think there may be a 4th and that’s the labor rate on the employee, not to be confused with the Role Rate which is used for projects.
Thank you for getting back to me and confirming that labor/burden rates come from the resource group. Doubted myself there when my testing didn’t show that.
I entered a job and messed around with the crew size - I did see that the estimated labor cost did change based on the crew size. My time and expense entry remain the same… which makes me highly consider that applied labor isn’t impacted by the crew size at all. Still the same $40 labor and $60 burden. (NotebookLM… pretty neat tool)!
which is used for projects.