Variances and Components Reference > Manufacturing-Related Variances
  PPT
Manufacturing-Related Variances
 
Variance
Calculation Method
Material Rate
Calculated at:
WO Component Issue (16.10)
WO Receipt Backflush (16.12)
Repetitive Backflush (18.22.13)
Reports:
Work Order Cost Report (16.3.4)
Transactions Detail Inquiry (3.21.1)
 
(WO BOM Unit Cost at Issue – GL Unit Cost) *
Actual Qty Issued
Material Usage
Calculated at:
WO Accounting Close (16.21)
Cumulative Order Close (18.22.10)
Post Accumulated Usage Variances (18.22.9)
Reports:
Work Order Cost Report (16.3.4)
Transactions Detail Inquiry (3.21.1)
Rep Operations Accounting Report (18.22.4.9)
 
{Actual Qty Issued – [qty per * (qty completed + qty rejected)]} * GL Unit Cost
Labor Rate
Calculated at:
SFC Feedback (16.20.1), (16.20.2), (16.20.3)
Can be deferred until:
WO Receipt (16.11), (16.12)
Repetitive Backflush (18.22.13)
Reports:
Work Order Cost Report (16.3.4)
Operations Accounting Report (16.20.13.10)
Rep Operations Accounting Report (18.22.4.9)
Per Operation:
[(Actual Setup Rate – Std Setup Rate) * Actual Setup Hrs] + [(Actual Run Rate – Std Run Rate) * Actual Run Hrs]
Setup and run rates are equal to the payroll rate (defined in 14.13.21) or the work center rate if payroll is not set up.
No variances if no labor reporting
Labor Usage
Calculated at:
SFC Feedback (16.20.1), (16.20.2), (16.20.3)
Can be deferred until:
WO Receipt (16.11), (16.12)
Post Accumulated Usage Variances (18.22.9)
Cumulative Accounting Close (18.22.10)
Reports:
WO Cost Report (16.3.4)
Operations Accounting Report (16.20.13.10)
Rep Operations Accounting Report (18.22.4.9)
 
Per Operation:
[(Actual Setup Hrs – Std Setup Hrs) * Std Setup Rate] + [(Actual Run Hrs – Std Run Hrs) * Std Run Rate]
Std Run Hrs =
Std Run Hrs * (Qty Completed + Qty Rejected)
Burden Rate
Calculated at:
SFC Feedback (16.20.1), (16.20.2), (16.20.3)
WO Receipt (16.11), (16.12)
Repetitive Backflush (18.22.13)
Reports:
WO Cost Report (16.3.4)
Operations Accounting Report (16.20.13.10)
Rep Operations Accounting Report (18.22.4.9)
 
 
 
 
Per Operation:
[(Actual Setup Bdn – Std Setup Bdn) * Actual Setup Hrs] + [(Actual Run Bdn – Std Run Bdn) * Actual Run Hrs]
Actual Setup Bdn = (Actual Setup Rate * Lbr Bdn%) + Lbr Bdn Rate + (Mach Bdn Rate * Mach/Op)
Std Setup Bdn = (Std Setup Rate * Lbr Bdn%) +
Lbr Bdn Rate + (Mach Bdn Rate * Mach/Op)
Actual Run Bdn = (Actual Run Rate * Lbr Bdn%) +
Lbr Bdn Rate + Mach Bdn Rate
Std Run Bdn = (Std Run Rate * Lbr Bdn%) +
Lbr Bdn Rate + Mach Bdn Rate
Burden Usage
Calculated at:
SFC Feedback (16.20.1), (16.20.2), (16.20.3)
Can be deferred until:
WO Receipt (16.11), (16.12)
Post Accumulated Usage Variance (18.22.9)
Cumulative Order Close (18.22.10)
Reports:
WO Cost Report (16.3.4)
Operations Accounting Report (16.20.13.10)
Rep Operations Accounting Report (18.22.4.9)
 
Per Operation:
[(Act Setup Hrs – Std Setup Hrs) * Std Setup Bdn] + [(Act Run Hrs – Std Run Hrs) * Std Run Bdn]
Std Setup Bdn = (Std Setup Rate * Lbr Bdn%) +
Lbr Bdn Rate + (Mach Bdn Rate * Mach/Op)
Std Run Bdn = (Std Run Rate * Lbr Bdn%) +
Lbr Bdn Rate + Mach Bdn Rate
Subcontract Rate
Calculated at:
PO Receipt (5.13.1)
(Subcontract PO Unit Cost – Subcontract Unit Cost from Routing) * Qty Received
Subcontract Usage
Calculated at:
WO Accounting Close (16.21)
Post Accumulated Usage Variance (18.22.9)
Cumulative Order Close (18.22.10)
[Qty Received – (Op Qty Completed + Op Qty Rejected)] * Subcontract Unit Cost from Routing
Method
Calculated at:
WO Accounting Close (16.21)
Cumulative Accounting Close (18.22.10)
 
Balance of WO/ID value remaining
Mix (Co/By-Products)
Calculated at:
WO Accounting Close (16.21)
 
[Order Qty – (Receipt Qty + Scrap Qty)] * GL Unit Cost