When you set fields to calculate work center rates, the system calculates the labor and burden rates from the entered total values for labor and burden.

The system calculates the labor and burden rates by work center and machine by dividing the total value by the number of hours recorded against the work center/machine. The system only considers productive hours for this calculation, and down time is ignored. For this purpose, the system calculates run and setup labor separately; likewise, it calculates separate rates for labor burden and machine burden from the totals entered in PC Work Center Rate Maintenance (30.5.3.1). When the system calculates and the hour rate for burden or labor is negative, it sets the hour rate to zero (0) and logs the exception.