Standard Cost Environment Question

Yahoo Archive
1
Joe
We don't have your scenario but would it work if you set your employees labor
rate to zero and just used the burden rate to cover both? I believe the reason
it works the way it does so you can capture the actual costs associated with
each employee as they work in different work centers or on different machines.

If you have a standard cost model and your labor cost is a fixed unit per time
on a work center then add that labor cost to your burden cost. To recover your
labor cost later subtract it back out.

Hope that helped
Russ Dover

> Hello,
>
>
>
> We are a standard cost environment...our labor and burden costs (a.k.a
> shop rate) are based on a standard cost model.
>
> We would like our actuals to be based on these labor and burden rates
> and only have time be the variable when it comes to a manufacturing
> variance.
>
>
>
> It looks like Vantage does grab the burden rate from the resources when
> calculating actual costs but does not for the labor rate. It appears to
> pull in the employee's rate.
>
> We have been told that this is by design but it does not sit too well
> with us.
>
>
>
> In order to achieve what we are looking for we would have to set each
> employee's pay rate to the standard labor rate. This kind of stinks
> because we would lose the ability to compare the labor portion of our
> shop rate to that of the actual employee running the job.
>
>
>
> Does anyone else have to deal with this scenario or are we unique?
>
>
>
>
>
> Thanks,
>
> Joe Rojas
>
> IT Manager
>
> TNCO, Inc.
>
> 781-447-6661 x7506
>
> jrojas@...
>
>
>
> [Non-text portions of this message have been removed]
>
>
>
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>
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>
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>

Russ Dover
rustover@...
717 336 2340 voice
717 336 7507 Days at work
717 336 4182 Fax at work
2
Hello,



We are a standard cost environment...our labor and burden costs (a.k.a
shop rate) are based on a standard cost model.

We would like our actuals to be based on these labor and burden rates
and only have time be the variable when it comes to a manufacturing
variance.



It looks like Vantage does grab the burden rate from the resources when
calculating actual costs but does not for the labor rate. It appears to
pull in the employee's rate.

We have been told that this is by design but it does not sit too well
with us.



In order to achieve what we are looking for we would have to set each
employee's pay rate to the standard labor rate. This kind of stinks
because we would lose the ability to compare the labor portion of our
shop rate to that of the actual employee running the job.



Does anyone else have to deal with this scenario or are we unique?





Thanks,

Joe Rojas

IT Manager

TNCO, Inc.

781-447-6661 x7506

jrojas@...



[Non-text portions of this message have been removed]