# NetSuite Assembly Item Standard Cost Rollup Calculator

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

## Short answer

Build a per-unit standard cost from material, setup, run time, labor rate and overhead, and see how lot size amortizes setup.

## Category

netsuite

## Erp

Oracle NetSuite

## Industry

Discrete Manufacturing

## Audience

- Cost accountant
- NetSuite admin
- Manufacturing engineer

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Material cost per unit

**Key:** material

**Type:** number

**Default:** 38.5

**Min:** 0

**Step:** 0.1

**Unit:** $

#### Setup time per lot

**Key:** setup_hours

**Type:** number

**Default:** 2

**Min:** 0

**Step:** 0.25

**Unit:** hours

#### Run time per unit

**Key:** run_min

**Type:** number

**Default:** 6

**Min:** 0

**Step:** 0.1

**Unit:** min

#### Labor rate

**Key:** labor_rate

**Type:** number

**Default:** 32

**Min:** 0

**Step:** 0.5

**Unit:** $/hour

#### Overhead on labor

**Key:** oh_pct

**Type:** number

**Default:** 45

**Min:** 0

**Max:** 400

**Step:** 1

**Unit:** %

#### Standard lot size

**Key:** lot_size

**Type:** slider

**Default:** 100

**Min:** 10

**Max:** 1000

**Step:** 10

**Unit:** units

**Outputs:**

#### Setup cost per unit

**Key:** setup_unit

**Expr:** setup_hours * labor_rate / lot_size

**Format:** currency

#### Run labor per unit

**Key:** run_unit

**Expr:** run_min / 60 * labor_rate

**Format:** currency

#### Total labor per unit

**Key:** labor

**Expr:** setup_unit + run_unit

**Format:** currency

#### Overhead per unit

**Key:** overhead

**Expr:** labor * oh_pct / 100

**Format:** currency

#### Standard cost per unit

**Key:** std_cost

**Expr:** material + labor + overhead

**Format:** currency

**Primary:** true

#### Standard cost per lot

**Key:** lot_cost

**Expr:** std_cost * lot_size

**Format:** currency

#### Material share of cost

**Key:** mat_share

**Expr:** material / std_cost * 100

**Format:** percent

**Primary:** true

**Chart:**

#### Standard cost per unit vs lot size

**Type:** line

**X:** lot_size

**From:** 10

**To:** 500

**Steps:** 25

**Series:**

- std_cost

**Disclaimer:** Simplified single-operation rollup. Real routings have several operations, work centers and machine rates; sum them the same way.

## Content

**Intro:** Standard cost for an assembly is the sum of material, labor and overhead per unit at a defined lot size. This calculator shows the rollup logic behind the cost you load into NetSuite, and how the lot size you assume changes the setup burden per unit.

**Sections:**

#### How to use it

**Body:** Enter the BOM material cost per unit, the setup time per lot, the run time per unit, a labor rate and the overhead rate applied to labor. Set the standard lot size. The result splits cost into material, setup, run and overhead. Drag the lot size slider to see the setup effect: small lots carry a heavy per-unit setup cost, and the curve flattens as lots grow. Use the number as a cross-check against what your costing run produces.

#### The method

**Body:** Setup cost per unit is setup hours times the labor rate divided by lot size. Run labor per unit is run minutes divided by 60 times the rate. Overhead is applied as a percentage of labor here, but your organization may absorb it on machine hours or per unit instead; the structure of the rollup is the same. Standard cost is material plus labor plus overhead. For multi-level assemblies, roll up lowest-level items first so each parent picks up the correct child cost.

**Bullets:**

- Cost lowest-level subassemblies first
- Keep lot size consistent between costing and planning
- Review overhead basis with finance before changing it

#### Reading it and common mistakes

**Body:** Material share tells you where cost reduction effort belongs; above 70 percent, labor tweaks hardly matter. A frequent mistake is costing at a lot size that never occurs, so actual setup absorption differs from standard and generates unfavorable variances every month. Another is leaving stale labor rates in place after a wage change. Compare the output to your actual average work order lot size and update the standard when the gap becomes persistent.

**Cta:** Netray can pull actual lot sizes, routing times and component costs from NetSuite to show which standards have drifted from reality.

**Faq:**

#### Does this replace the NetSuite cost rollup?

**Answer:** No. It is a transparent cross-check of the arithmetic. NetSuite performs the actual rollup from your BOM, routing and cost settings, and results depend on your costing method and configuration.

#### How should overhead be applied?

**Answer:** Common bases are direct labor hours, machine hours or a percentage of labor cost. Use the base that best correlates with how overhead is consumed. Your cost accountant should own the choice.

#### What lot size should I use for standard cost?

**Answer:** Use a representative lot size from recent history, often a median of completed work orders. A lot that is rarely built produces misleading standards.

#### Does scrap belong in the standard?

**Answer:** If scrap is stable and expected, include it through yield on material and labor so the standard reflects realistic consumption. Treat abnormal scrap as a variance, not as part of the standard.

## Search terms

netsuite standard cost rollup, netsuite assembly item cost, standard cost calculator manufacturing, setup cost amortization lot size, overhead absorption calculator, bom cost rollup labor overhead, netsuite manufacturing routing cost

---
Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json