# JDE Standard Cost Roll-Up Per Unit Calculator

> Source: https://netray.co/tools/jde-standard-cost-rollup-per-unit-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Sanity-check a rolled-up unit cost by building it from setup, run hours, labor and machine rates, overhead percent and scrap, then see how lot size moves it.

## Category

oracle

## Erp

Oracle JD Edwards EnterpriseOne

## Industry

Discrete Manufacturing

## Audience

- Cost accountant
- JDE manufacturing consultant
- Controller

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Lot size

**Key:** lot

**Type:** number

**Default:** 50

**Min:** 1

**Step:** 5

**Unit:** units

**Help:** Setup is spread across this many units.

#### Setup hours per lot

**Key:** setup_hrs

**Type:** number

**Default:** 1.5

**Min:** 0

**Step:** 0.25

**Unit:** hours

#### Labor run hours per unit

**Key:** run_hrs

**Type:** number

**Default:** 0.4

**Min:** 0

**Step:** 0.05

**Unit:** hours

#### Labor rate

**Key:** labor_rate

**Type:** number

**Default:** 28

**Min:** 0

**Step:** 1

**Unit:** per hour

#### Labor overhead rate

**Key:** oh_pct

**Type:** number

**Default:** 85

**Min:** 0

**Step:** 5

**Unit:** % of labor

**Help:** Variable plus fixed overhead applied on labor dollars.

#### Machine hours per unit

**Key:** mach_hrs

**Type:** number

**Default:** 0.3

**Min:** 0

**Step:** 0.05

**Unit:** hours

#### Machine rate

**Key:** mach_rate

**Type:** number

**Default:** 45

**Min:** 0

**Step:** 1

**Unit:** per hour

#### Material cost per unit (net)

**Key:** material

**Type:** number

**Default:** 62

**Min:** 0

**Step:** 1

#### Scrap rate

**Key:** scrap

**Type:** number

**Default:** 3

**Min:** 0

**Max:** 50

**Step:** 0.5

**Unit:** %

**Outputs:**

#### Labor per unit

**Key:** labor

**Expr:** (setup_hrs / lot + run_hrs) * labor_rate

**Format:** currency

#### Labor overhead per unit

**Key:** labor_oh

**Expr:** labor * oh_pct / 100

**Format:** currency

#### Machine cost per unit

**Key:** machine

**Expr:** (setup_hrs / lot + mach_hrs) * mach_rate

**Format:** currency

**Description:** Setup hours charged to the machine as well.

#### Material with scrap

**Key:** material_loaded

**Expr:** material / (1 - scrap / 100)

**Format:** currency

#### Standard unit cost

**Key:** unit_cost

**Expr:** labor + labor_oh + machine + material_loaded

**Format:** currency

**Primary:** true

#### Conversion cost per unit

**Key:** conversion

**Expr:** labor + labor_oh + machine

**Format:** currency

**Primary:** true

**Chart:**

#### Unit cost vs lot size

**Type:** line

**X:** lot

**From:** 1

**To:** 200

**Steps:** 40

**Series:**

- unit_cost

**Disclaimer:** Illustrative build-up. Your JDE cost method, rate tables and overhead absorption rules decide the actual roll-up result.

## Content

**Intro:** After a cost roll-up the number on the item looks wrong, and nobody can tell if it is the routing, the rates or the lot size. Rebuilding one item by hand gives you a reference to compare against the system.

**Sections:**

#### How to use it

**Body:** Enter the routing times and rates from the work center and routing master for one item, and its net material cost from the bill of material. Compare the result with the cost the system produced. A gap points you to a lot size mismatch, a missing overhead rate or a different scrap factor.

#### The build-up

**Body:** Setup hours are divided by lot size, added to run hours and multiplied by the labor rate. Overhead is a percent of labor dollars. Machine cost uses the same setup spread plus machine run hours. Material is divided by one minus scrap, which grosses it up for the units lost.

**Bullets:**

- Costing lot size is not the same as order quantity.
- Some sites charge setup to labor only; adjust as needed.
- Check whether outside operations are costed separately.

#### Reading the chart

**Body:** Unit cost drops steeply at small lots because setup is spread over few units, then flattens. If your costing lot size sits on the steep part, small changes to it will swing the standard noticeably, so choose it deliberately and document why.

**Cta:** Netray can help investigate roll-up differences and build a reconciliation report from your item cost and routing data.

**Faq:**

#### Does this replace the JDE cost roll-up?

**Answer:** No. It is a hand check for one item. The system applies your configured cost method, rate tables and overhead rules, which this simplified model does not replicate fully.

#### What lot size should I use?

**Answer:** Use the costing lot size recorded for the item, not the typical order quantity. If they differ, the standard will not match actual cost behavior.

#### How is scrap treated?

**Answer:** Material is grossed up by dividing by one minus the scrap rate, which assumes scrapped units consume full material. Operation yield on labor is not modeled here.

#### Why add setup to machine cost?

**Answer:** Machines are tied up during setup. If your rates treat setup as labor only, set machine setup aside by editing the model on paper.

## Search terms

jde standard cost calculation, jd edwards cost roll up, jde item cost per unit, jde routing setup run cost, jde manufacturing cost estimate, jde lot size cost effect

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