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How to calculate Admin Overhead in Standard cost estimate and Production Order

Aug 03, 2017 at 08:56 AM


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Finished Product is :Music Player

Components In the Bill of Material

Back Panel @ $25

Front Panel @ $25

Internal Drive @ $70

Tasks In the Routing

Setup Hours 1h @ $20

Labor Hours 3h @ $20

Machine Hours 4h @ $25

Overhead Rates

Material OH 25%

Labor OH 25%

Machine OH 75%

Admin OH 25%

Total Standard Cost: $500,Total Material Cost: $120,Total Activity Cost: $180,Total Overhead Cost: $200

Doubt:How to apply Admin Overhead Rate and necessary configurations

I Got 420 as in standard cost estimate.

Material cost: 120

Material OH: 30

Labour Cost :60

Labour OH:15

Machine Cost:100

Machine Overhead:75

Setup Cost:20

Admin Overhead?: I didn't know how to configure.For reference click on link and see page 20 in Pdf

Can you suggest me in below case how to apply admin overhead 25% in standard cost estimate and In production Order and how to give base in costing sheet


Hari lalam.

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1 Answer

Hari Krishna Prasad Lalam Aug 23, 2017 at 12:20 PM

Hi,Please respond any one

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