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Does cost roll up take into account the number of Resource Units Assigned

in Costing 13 comments

Summary:

When calculating Direct Labor Cost during the cost roll process does it take into account the number or Resource Units Assigned to that Work Center? I have an Operation that required 2 resources at $50 rate. When I do cost roll, all I am seeing is the Labor Cost being calculated based on the $50 rate multiplied by the Usage Rate. (Operation Basis = Variable)

Example:

(Resource Rate = $50) x (Usage Rate = 1) = $50 Direct Labor

What I would expect is :

((Units Assigned = 2 )X(Resource Rate = $50)) x (Usage Rate = 1) = $100 Direct Labor


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