overhead calculation while issuing to Job

Hi,

Our customer has a scenario where the Overheads on the material cost needs to get calculated only when the item is issued to Job.

Say for example if item A is available with cost as 100, whenever the item is issued to job, the item should get be rolled up in cost as 105 (assuming the overhead percentage is 5%). Or if not possible, the item has to take the Percentage of overhead based on the department.

But I do not see any link between Department and Item.

So how can I see that an Overhead cost can be calculated as % of the material cost at the time of issuing to a JOB