> ## Documentation Index
> Fetch the complete documentation index at: https://docs.bold-factory.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Manufacturing order costs

> Analyze planned cost, actual cost and variances by order and operation.

Use **Production costs** to compare planned cost with the cost recorded on the shop floor. Bold breaks down each order into materials, labor, machine, total and cost per unit.

## Data you can review

| Section | What it includes |
| - | - |
| Planned quantity | Planned order quantity. |
| Planned cost | Labor, materials, machine, total and cost per unit calculated from the recipe and planning. |
| Completed quantity | Quantity recorded as produced. |
| Actual cost | Labor, materials, machine, total and cost per unit calculated from actual consumption and time records. |
| Operations | Details by operation to locate the variance. |

## Before analyzing an order

* For planned-cost comparisons, check the planned operations and materials. A recipe can provide this data.
* Actual material consumption must be associated with a lot.
* Completed production must be recorded.
* Labor time must be assigned to employees with an hourly cost.
* Resources or machines must have an hourly cost when you want to allocate machine cost.

## Analyze variances

<Steps>
  <Step title="Open the list">
    Go to **Costs** and open **Production orders**.
  </Step>

  <Step title="Filter the order">
    Search by MO code or manufactured item. Sort by actual cost per unit to identify variances.
  </Step>

  <Step title="Compare planned and actual costs">
    Review planned quantity, completed quantity, planned total cost and actual total cost.
  </Step>

  <Step title="Open the order">
    Open the order's **Costs** tab to see the breakdown by operation.
  </Step>

  <Step title="Review the operation, materials and labor">
    If a variance is concentrated in one operation, open it and review consumed materials, employee hours and machine cost.
  </Step>
</Steps>

## How it is calculated

| Cost | Planned source | Actual source |
| - | - | - |
| Materials | Recipe materials and planned item cost. | Consumed materials and the cost of the consumed lot. |
| Labor | Planned time and planned or average hourly cost. | Recorded time per employee and their hourly cost. |
| Machine | Planned duration and resource hourly cost. | Actual machine time and resource hourly cost. |
| Cost per unit | Planned total cost / planned quantity. | Actual total cost / completed quantity. |

## Example

An MO plans to manufacture `100 units` with `€300` in materials, `€120` in labor and `€80` in machine costs. Planned total cost is `€500`, or `€5.00/unit`.

During execution, more materials are consumed and `95 units` are completed. Actual cost reaches `€570`, or `€6.00/unit`. In this case, review:

* Materials with an actual quantity greater than planned.
* Lots with a unit cost different from the planned cost.
* Operations with more recorded hours.
* Machines with an actual duration greater than planned.

## Common problems

| Problem | What to review |
| - | - |
| Actual cost is zero | Consumption, time records or completed production are missing. |
| Unexpected material cost | Review the consumed lot and its cost per unit. |
| Planned labor differs from actual labor | Planned cost uses planning; actual cost uses employees and recorded time. |
| Very high cost per unit | Check whether the completed quantity is lower than planned. |
| You cannot see production costs | Review production cost permissions. |

## Related

* [Manufacturing](/en/concepts/manufacturing)
* [Manufacturing orders](/en/concepts/manufacturing/manufacturing-orders)
* [Perform shop floor operations](/en/guides/manufacturing/execute-shop-floor-operations)
* [Prepare cost data](/en/guides/costs/prepare-cost-data)


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