Some allocation base settled for product costing in ERP

Resource Class	Resource	Cost Component Class	Allocation Basis	Comments
Direct Labor	Labor	Direct Labor	Labor Hrs	-
Labor Overhead	Labor Overhead	Labor Overhead	Labor Hrs	-
Costing Resource	Granulation Costing Resource	Granulation Cost	Machine Hrs	The overheads related to Granulation will be captured based on the ‘Department’ segment in the COA
QAD	QAD	Quality Overhead	Machine Hrs	QAD cost can also be allocated on the basis of Quality hours.
Warehouse Overhead	Warehouse Overhead Resource	Warehouse Overhead	Machine Hrs	The allocation of Warehouse overhead to the product cost will be on the basis of the machine hours
GPO (General Plant Overhead)	GPO Resource	GPO	Machine Hrs	The allocation of Warehouse overhead to the product cost will be on the basis of the machine hours