Applies Labor and Overhead

rock

Member
Can someone help me? I need to know exactly how JDE computes applied labor and OH on work orders. We have setup labor and multiple step routings. Does JDE use the final qty completed? Does it use the qty completed at each step of the routing (assuming that a few pieces can be lost at each step)? Does it use the qty that the work order is opened for? What happens if we produce more than the qty that the work order is opened for? We are in the middle of an audit and are unable to answer our audutors questions on these issues. We use a standard cost system. Work center rates have not been changed for one year but engineering may have changed setup time and/or routing times.

I thank everyone who responds. Without all of you I will be lost!
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