Standard hours represent the planned time (in hours) required for an employee to complete a specific Production Operation when working with a particular Bill of Materials.
Each standard hour has an associated cost. The Standard hour cost is the cost of one hour of work for a specific Production Operation.
You can define the Standard hour cost for a Production Operation and calculate the employee’s labour cost based on the Operation Report.
The Standard hour cost for a Production Operation is displayed in all Bills of Materials that include this operation. In new Bills of Materials, the labour cost is automatically calculated using standard hours.
However, in existing Bills of Materials, you should switch to this calculation method manually.
If the labour cost is adjusted, automatic calculation using standard hours is disabled. To resume standard hour-based calculations, you need to enable them manually.
If the Standard hour cost for a Production Operation or the number of standard hours is deleted or not specified, the calculation result will be zero.