What is standard costing that can be done with the production scheduler Asprova?
The production scheduler Asprova is a system that automatically generates production schedules and purchase schedules based on the following information.
- Order (informal indication, order receipt)
- Master (part composition, item process, work efficiency)
- Calendars and shift patterns
The following is calculated by importing unofficial announcements and orders into the Asprova order table and performing expansion calculations based on the standard production plan (number of products to be produced) generated by executing the reschedule (expansion of required quantities and allocation of work to facilities).
- Quantity of production given (quantity of inputs given)
- Quantity to be purchased
- Planned direct working hours
In standard costing, the standard cost per piece is calculated based on the unit price of raw materials, labor rate, and allocation rate for each cost item as follows.
- Standard unit price of direct material cost: unit price x required quantity
- Wage rate for direct labor costs: wage rate x number of man-hours
- Allocation rate of manufacturing costs: Allocation rate x number of man-hours (in the case of pro-rated work hours) or Allocation rate (in the case of pro-rated production volume)
In the Item Table of Asprova, the unit price of raw materials, rent rate, and allocation rate are set for each cost item that is a breakdown of the item. However, since Asprova does not have the function to automatically calculate the rent rate and allocation rate from the fixed cost budget, the results of calculations using Excel outside of Asprova are set in the Item Table.
Calculate the wage rate and allocation rate in Excel and set the item table.
The following is a method for calculating the wage rate and allocation rate to be set in the Asprova item table from the fixed cost budget (direct labor cost, indirect labor cost, depreciation, etc.).
- Tabulate the fixed cost budget by account.
- The primary allocation ratio for allocating indirect fixed costs that cannot be tied to cost centers (product groups, direct departments, production lines, etc.) to cost centers is calculated by aggregating scheduled direct work hours or scheduled production volumes.
- Based on the primary allocation ratio, indirect fixed costs are allocated to the cost center in the primary allocation and tied to the cost expense items.
- Since direct and indirect fixed costs were tied to cost items, the wage rate and allocation rate were calculated by dividing by the scheduled direct work hours or the scheduled production volume.
- Set the wage rate and allocation rate in the item table and calculate the budget based on the standard cost.
If you can set the unit price, rate, and allocation rate for each cost category, Asprova can calculate the scheduled production quantity and scheduled man-hours, so you can calculate next year's budget by product, product group, machine, and customer based on the sales forecast.