Charge overheads based on work center or plant overhead for maintenance work orders

Summary

Overall Business Case

• We need to charge overheads based on work center or plant overhead for maintenance work orders
• Expected distribution is expected to be same as resource (labor) costs

Credit – Overhead Absorption (expense pool)

Debit (Maintenance Expenses)

Content (required):

• These expenses then like labor or material costs should be pushed to depot repair charges as we will bill the customer based on a fixed-up markup on overall costs incurred by us to repair ( which is material + Labor + overhead). In this case how overhead expenses are expected to map

Current Observed Behavior

• Inspite of overheads being setup with standard overhead rate for work center / plant overhead , cost accounting does not apply overheads