Work Center Maintenance (14.5)
A work center identifies a group of resources (people, machines, production lines, and so on) that are capable of doing the same processes.
Rates are specified at the work-center level. These include the standard labor rates per hour for both setup and run operations, and the variable burden rates that apply to all work done in that work center.
Work Center Maintenance
Most of the fields in Work Center Maintenance are important from a costing perspective:
Mach/Op
Used in calculating burden costs. This value indicates how many machines are to be set up to produce this item. The setup cost will be multiplied by this number to determine the machine burden from setup cost. This is the default value for the same field in Routing Maintenance.
Mach Bdn Rate
Used in calculating burden costs. This is the burden rate per hour applicable to machine run time and setup at this work center.
This value is used by item cost calculations and by labor feedback functions to calculate and post actual costs and variances. It applies to all operations carried out at this work center and cannot be changed for individual operations.
Setup Rate
The total work center labor cost paid per labor hour to set up this work center. Used in calculating labor and labor burden costs.
Labor Rate
The total work center labor cost paid per labor hour to run this work center. Used in calculating labor and labor burden costs.
Example: If there are two employees in the work center (Run Crew = 2) and one employee earns $10 per hour and the other employee earns $12 per hour, the labor rate entered would be $22. If both employees earn $12 per hour, then the labor rate entered would be $24
Lbr Bdn Rate or Percentage
The labor burden rate or percentage per hour applicable to both setup and run time at this work center.
