How is actual Manufacturing Overhead calculated?

g8trjasonb

Navision 5.0.



I'm trying to understand how the actual Mfg OH of 387.33 was determined, along with expected Mfg OH of 395.84. Also, is the standard cost for Mfg OH calculated?

Thanks

faizguy84

Manufacturing Overheads are indirect material cost, indirect labour cost or other expense incurred while making a certain product. This cost is added in item cost. In navision manufacturing overheads are calculated from Overhead rate defined on item card or Indirect cost% defined on item card.

The difference in Manufacturing overhead Expected cost and actual exist because your expected material cost and actual material cost is different.

Kindly check ur Item card , Indirect cost % must have been defined.

Example- If Indirect cost % on Item is 10%
Material cost(expected ) -- 1000 Then
Manufacturing overhead (Expected) 100
Material cost(actual ) -- 800 Then
Manufacturing overhead (actual) 80

I hope i answered your query.

____________________________
Regards,
Faisal Bukhari.

g8trjasonb

Makes sense. Thanks