Bom parts-miscellaneous charges

We use standard costing. On the price tab to get the standard you have to add the “price” and the “price misc. charges”. What are the “price Misc charges” that are included as part of the standard of BOM items? I always thought it was labor and overhead but it never ties to the detail listed in the cost rollup by cost group.


Have you indirect costs? There will be a base batch to calculate the standard cost and any setup costs will be based upon this.

Yes we do have indirect costs. Our standard consist of material, direct labor and overheard. I’m still not clear. I can tie the material perfectly (from the cost rollup) but the miscellanous charges appear to be just a component of the labor and overhead. For example, I have a part that has a standard of $990.85 on the price button this consists of a Price of $563.25 and Miscellaneous charges of $427.60. When I click on the cost roll up tab it shows Material $392.77, Labor $203.43 and Overhead $394.65 for a total of $990.85. I was expecting the standard on the price tab to show Price $392.77 and Miscellaneous charges of $596.20. But it’s completely different.

Are the miscellaneous charges just a piece of overhead? Is it just the setup costs from the route???

The miscellaneous charge should just be for the setup time, so the labour will have setup time, but your costing sheet will also have indirect costs on the cost group associated with the setup category in the work centre. It is difficult to know without seeing the costing sheet and routing etc, but I suggest you setup a new route for the item with one step, assign it a setup cost, no run time or quantity cost, run the calculation and look at the price miscellaneous charge on the pending price, and then on the complete calculation look at the tree structure tab to see how the indirects are calculated. Much easier if you strip it back and build it up. It will also depend on the type of indirect, fixed or variable and how these are applied and at what rate. You just need to strip it back and reconcile it, basically the miscellaneous is only setup and the related indirects, it is not a split of labour - the reason for this is that the labour run time is directly attributeable to the quanitty you make, whilst the setup costs are shared by the quantity, so you should calculate the standard cost based upon your standard batch quantity to get a cost of the miscellaneous and quantity to create variations against, if your calculation always has a quantity of 1 this will skew the standard cost high.

This is very helpful. I’m going to test it as you suggest.

Thank you very much