Bill of Materials Costing: Multi-Level BOMs, Scrap Factors, Routings, Overhead Rates & Product Cost Roll-Ups

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Cost a single-level bill of materials line by line, total the material cost per finished bench, isolate the hardware with a condition and find the line that drives the cost.
• Explode a three-level bill of materials into extended quantities per finished bench with XLOOKUP on the parent, and total the requirement of a raw material that appears in several branches.
• Gross up the net BOM quantities for scrap, cost the material including scrap, find the cost of the waste itself and combine two process yields.
• Turn a routing into minutes and labour cost per bench, spread each setup over the batch size and see how much a small batch costs per unit.
• Set a machine-hour rate and a labour-hour rate from fictional budgets, apply overhead to three products and compare the result with a single plant-wide rate.
• Roll the cost of a bench up its bill of materials level by level – parts into assemblies, assemblies into the finished product – and split the result into material and conversion.
• Use a where-used list to find every product hit by a supplier price increase, work out the cost increase per product, the new margin and the price that would keep the old margin.
• Compare the internal cost of a sub-assembly with a supplier quote using the full cost and the relevant cost, put a yearly figure on the decision and chart the cost structure of the bench.