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Former Member
Mar 21, 2009 at 07:45 PM

Setupcost Calculation


Dear CO Experts,

I have one doubt

How to Setup Cost will be maintained explained. Becoz I have one Doubt.

Here I explained by Giving example

I ran and released cost estimate for Material No -21033GK13F

Raw Material 60

Setup Cost 5

Machine Cost 20 (1 hour Consuming hour cost is 20/-)

Labour Cost 15 (1 hour Consuming hour cost is 15/-)


Total Cost 100 (Material Master Updated with this value Cost Released)


Now I Created Production Order for 100 Nos of Material No.21033GK13F

Now Cost Showing(100 nos)

Rawmaterial Value 6000

Setup Cost 5

Machin Cost 2000

Labour Cost 1500


Total Cost 9505


At the time of Goods Receipt Entry is:

Stock of FG 10000 Dr.

To Change In Stock 10000 Cr.

Eventhoug 100 no Setup cost is 5/- But system showing that is as variance 495/-

Actually 100 Nos Setup Cost is 5/-.

We are using Hour Based activity types.

Please Explain about setup Cost Calculation in detail.