Table of Contents
What is an hourly machine rate calculation?
The machine hourly rate calculation is a method of cost unit accounting. It represents a refinement of the surcharge calculation, of which it is only used when determining the Manufacturing costs deviates.
Machine hourly rate calculation implementation
In order to be able to carry out the machine hourly rate calculation, it is first necessary to split the overhead costs according to their machine dependency.
The contributions from Auxiliary cost centers are treated as machine-independent overhead costs and are determined separately in the BAB, while the remaining overhead costs are added to the individual costs as a total block.
The machine hourly rate is calculated in several steps:
- The determination of the machine running time, whereby the annual running time is determined taking into account the downtime and maintenance time.
- The determination of the hourly machine rate, which mainly consists of depreciation, interest, maintenance costs, space costs and energy costs.
- The determination of the production costs, which forms the conclusion. The importance of this process is increasing due to the increasing plant intensity.