Surcharge calculation
The overhead calculation is a business instrument for determining the offer price.
In the craft and the industry several different products are made. A simple distribution of the total costs among the cost units (total costs / cost units) would lead to an inaccurate result. Therefore, one divides the total costs into individual and overhead costs . However, this is part of the cost type accounting (KAR). The overhead total and the calculation of the overhead surcharge rates are determined in an operating accounting sheet.
The overhead costing is divided into single-level and multi-level overhead costing. Furthermore, a distinction is made between the summary overhead costing , the single-level and the differentiating overhead costing , the multi-level.
One-step surcharge calculation
All overhead costs incurred are added to the corresponding individual costs with the aid of an overhead surcharge rate. Choose a unit cost base that has the greatest impact on overhead costs. This surcharge rate is determined in terms of quantity (e.g. material or wages or production).
The single-level surcharge calculation can also be defined in terms of value (e.g. depreciation of a machine). However, it is necessary to know the number of machine hours or the amount of depreciation per unit of the costing object.
The single-level surcharge calculation is also referred to as a summary. The single-stage surcharge calculation is essentially only carried out by small businesses and does not require cost center accounting. It can only be justified if the overhead costs in a company are low.
Single-level overhead costing on material
The surcharge calculation with an overhead rate on material is shown in the following scheme.
| + Direct material costs | MEK | |
| + Material overheads | MGK | |
| = Material costs or prime costs | MK | |
| + Profit surcharge ( percent ) | G | |
| = Selling price | VP |
Single-stage surcharge calculation on production
An example of the one-step surcharge calculation based on the production costs. This costing calculation, which is greatly simplified, is often used for hourly rates.
| + Direct production costs | FEK | |
| + Manufacturing overheads | FGK | |
| = Production costs or prime costs | HK | |
| + Profit surcharge ( percent ) | G | |
| = Offer price | AP |
Surcharge calculation and machine hours
A simple example shows the integration of annual working hours and machine hours in the single-level calculation scheme. Inflatable boats are manufactured in a company's manufacturing department. The production of a boat can be assigned individual costs of 1000 monetary units (MU). It takes 5 machine hours to build a boat.
In addition, there are manufacturing overheads of 50,000 GE per year, which should be added to the manufacture of the boats on the basis of the machine hours per year (1,600 h). As an additional rate you get:
To determine the proportionate overhead costs per boat, multiply the surcharge rate by the number of machine hours required to manufacture a boat:
- Manufacturing costs = direct costs + share of overheads = 1000 MU + z × 5 h = 1000 MU + (50,000 MU / 1600 h) × 5 h = 1156.25 MU
Multi-level surcharge calculation
Multi-level surcharge calculation schemes integrate surcharges on material, production, administration and sales and can be expanded further.
Two-step surcharge calculation
The two-step surcharge calculation takes into account two surcharge rates, the surcharges on direct material and production costs. This form of surcharge calculation is common in smaller production-oriented companies, whereby the production costs are often also integrated using hourly rates.
Scheme with material and manufacturing overheads
| + Direct material costs | MEK | |
| + Material overheads | MGK | |
| + Direct production costs | FEK | |
| + Manufacturing overheads | FGK | |
| = Manufacturing costs or prime costs | = | HK |
| + Profit surcharge ( percent ) | G | |
| = Selling price | VP |
Scheme with hourly rate
| + Direct material costs | MEK | |
| + Material overheads | MGK | |
| + Hourly rate | FLK | |
| = Manufacturing costs or prime costs | = | HK |
| + Profit surcharge ( from one hundred) | G | |
| = Selling price | VP |
Three-step surcharge calculation
The three-level surcharge calculation takes into account three surcharge rates, the surcharges on material, production and administration and sales. For reasons of simplicity, the surcharge rates for administration and sales are combined into one rate in small and medium-sized companies .
| + Direct material costs | MEK | |
| + Material overheads | MGK | |
| = Material costs | + | MK |
| + Direct production costs | FEK | |
| + Manufacturing overheads | FGK | |
| = Manufacturing costs | + | FK |
| = Manufacturing costs (MK + FK) | = | HK |
| + Administrative and distribution overheads | VVGK | |
| = Cost | SK | |
| + Profit surcharge ( from one hundred) | G | |
| = Selling price | VP |
Extended multi-level surcharge calculation
Surcharge calculation schemes can be expanded and take into account additional costs and surcharge rates that are derived from the respective company accounting sheets.
| + | Direct material costs | MEK | |
| + | Special direct costs of the material | SeMK | |
| + | Material overhead | MGK | |
| = | material costs | + | MK |
| + | Direct production costs | FEK | |
| + | Manufacturing overhead | FGK | |
| + | Special direct costs of production | SeKF | |
| + | Machine expenses | MaK | |
| = | Manufacturing costs | + | FK |
| = | Manufacturing costs of production (MK + FK) | = | HK P |
| - | Inventory increases | BV | |
| + | Inventory reductions | ||
| = | Manufacturing cost of sales | HK U | |
| + | Administrative overheads | VwGK | |
| + | Distribution overheads | VtGK | |
| + | Special direct costs of sales | SeKV | |
| = | Cost | SK | |
| + | Profit surcharge ( to one hundred) | G | |
| = | Cash sale price | BVP | |
| + | Discount ( in hundred) | Sk | |
| + | Agent commission ( in hundred) | VtP | |
| = | Target selling price | ZVP | |
| + | Discount ( in hundred) | R. | |
| = | List sales price (net) | LVP |
All surcharges are calculated by the hundred, for example the respective individual costs are the basis (100%) for calculating the surcharges. The exception here are price reductions such as rebates, agency commission and cash discount : The discount rate relates to the target sales price, not the cash sales price. The reason for this lies in the fact that the customer subtracts the discount and rebate from the invoice amount and does not know the size beforehand. It should be noted that the discount should only be calculated from the material costs for invoices . ( Production costs represent wage labor and are therefore not discountable!)
The list sales prices are usually given as net sales prices (excluding sales tax ) as part of the surcharge calculation . This overhead calculation refers to the manufacture of products is commercially analogously the Pricing with gross sales prices.
Disadvantages of the overhead calculation
- Simple, standardized products are too expensive (i.e. few orders), special designs are sold too cheaply (i.e. more orders, but losses!).
- If single and small series change for a product, the cost reduction for the series is too small.
- Strongly simplified calculation methods (weight cost calculation) lead to wrong measures to reduce costs.
- The falsification of the influences of quantity, size, complexity and novelty also shapes the “mentality” of sales (turnover instead of profit!).
See also
literature
- Klaus Olfert: cost accounting. 16th, improved and updated edition. Kiehl Verlag, Herne 2010, ISBN 978-3-470-51106-1 .