Average Costing with Material Overhead

Hi all

looking for some confirmation here or direction on something I’ve missed.

I’m doing some testing using Material Overhead across 2 inventory orgs and I’ve noted a difference in behaviour that I don’t know is standard or not.

For both. Costing is Average. Also user-defined Average Rates type, not used currently.

Org A

Created new Material Overhead and defaults, with Basis = Total Value, with a rate of 10%

Enabled the Material Overhead Rule on PO Receipt

On receipt of PO, Qty 100, Unit Cost 1. After costing runs I am seeing in Costs

Cost Type	Unit Cost	Material	Material Overhead