costing vs. capacity

[Beth Norris <BNorris@xxxxxxxxxxx>]

New question...

We are trying to set up standards for items that use the same work center.
The catch is that if we are building item A it requires 2 people, if we
build item B it requires 3 people (remember this is the same physical work
center).  The routing holds the pieces per hour that we can produce based on
the number of people required to do the job.  The work center holds the
labor rate for that work center used for computing the standard cost.

We were told to set up 2 different work centers so that the standard labor
rates could be loaded differently based on the number of people.  Work
center 1 would have the labor rate for 2 people and work center 2 the labor
rate for 3 people.  Item A routing would use work center 1 and Item B
routing would use work center 2.  Now when we run capacity gen...the system
sees this as 2 separate fully capable work centers (we have basically
doubled the capacity of this physical work center, when in fact we can't run
both at the same time.)  

How can we satisfy the requirements for the standard cost roll-up by item
without affecting the capacity?
Any ideas?

Beth A. Norris
Production Control Manager
Fawn Engineering
Des Moines, IA
bnorris@wittern.com

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