Average Cost - Overhead

How is overhead being calculated for WIP Completions? Shouldn’t overhead not be calculated when a WO is completed?  There is a separate outside processing fee for these.    For example, there are two WIP completions for the same item # and are coming in with an OH % of 28.8% and 45.7% respectively. Could you please explain on how WO’s were designed in Oracle?

We noticed that every inter-org transfers were calculating an additional 11% in every transaction.  So if an item # was transferred from NYW to NJW, the item # was picking up additional overhead.  How was on hand converted values handled?  In our old system costs included overhead so the only transactions that should be adding overhead % are PO receipts.