RE: Standard cost

["Art Shaffer" <ashaffer@xxxxxxxxxxxx>]

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The first question I have is WHY!

In strictly the costing use, it is like having one big department only
one rate to maintain. It works. Just do not combine the labor and
overhead $$ in the same buckets. If you do, some of the costing does not
calculate correctly.

I also assume that you are not using capacity planning or any planning
system for that matter.
Do you also have only one labor and overhead rate for your entire
facility?


Arthur B. Shaffer, CPIM
Principal Consultant/Business Development Manager
ASAP - Advanced Systems and Products, Inc.
AShaffer@AS400Pros.com
Phone - 908-789-3237   Fax - 208-978-7735
APICS Region IX  Director, Publicity - ABShaffer@yahoo.com
Chairperson, Congress for Progress 27
(Baltimore, MD- 4/17,18,19/02)
Wyndham Baltimore Inner Harbor Hotel


-----Original Message-----
From: bpcs-l-admin@midrange.com [mailto:bpcs-l-admin@midrange.com] On
Behalf Of Kusman Lim
Sent: Monday, February 18, 2002 4:34 AM
To: bpcs-l@midrange.com
Subject: Standard cost

BPCS 6002 plf cum Mar98.

We are planning to re setup all of our costing. Currently we need to
change
our Work Center. Our Finance consoultant (Not BPCS Consoultant) want to
pool
all labor hour into one W/C.

Can you give me some opinion on that ? What is the affect if we use
labor
into one W/C ?
What is the common  practice ?

Thanks
Regards
KUSMAN
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