For most process groups, aPriori determines direct overhead cost per part with the following formula:
Direct Overhead Cost per Part =
((Labor Cost * Overhead Multiplier) +
(Direct Overhead Rate * Cycle Time)) / Final Yield
Overhead multiplier is specified by the machine property Overhead Multiplier. Direct overhead rate is determined as described in Overhead Rates.
aPriori determines indirect overhead with one of the following two formulas:
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Based on indirect overhead rate:
Indirect Overhead Cost per Part =
Indirect Overhead Rate *
(Cycle Time + Amortized Batch Setup) / Final Yield
This formula is used if the Digital Factory variable Use Indirect Overhead Percentage is set to false (as it is in aPriori starting point Digital Factories). In this case, indirect overhead rate is determined as described in Overhead Rates.
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Based on indirect overhead percentage:
Indirect Overhead Cost per Part =
Indirect Overhead Percentage * Piece Cost
This formula is used if the Digital Factory variable Use Indirect Overhead Percentage is set to true. In this case indirect overhead percentage is taken from the Digital Factory variable Indirect Overhead Percentage. (Piece cost includes material, labor, direct overhead, logistics, setup, and expendable tooling costs per part, among other costs.)