        You can bundle jobs so that an employee can start more than one job at a time. If you bundle jobs, you must choose how registered time is allocated to the different jobs. Registered time for a bundle can be allocated by:

• - Time is divided between the jobs based on the estimated time for the job.

• - Time is divided according to total jobs bundled and how much time was spent finishing all the jobs.

• - Time is divided equally between the jobs that are in the bundle at any time.

• - Actual job time is allocated. The cost can be calculated on the basis of the actual payroll cost.

The results of the different allocation keys are illustrated in the following example.

# Allocation of time on bundled jobs - Example

You have three jobs that have to be completed. You start the first job and while this job is in progress, you start the second and third jobs making a bundle of three jobs.

The estimated production time for each of the three jobs is:

 Job 1 1 hour Job 2 3 hours Job 3 4 hours Total 8 hours

When the jobs are finished, the actual time that was spent on them was:

Start time

End time

Bundle time

Job 1

09:00

11:00

2 hours

Job 2

10:00

13:00

3 hours

Job 3

10:00

15:00

5 hours

Bundle

09:00

15:00

6 hours

If the allocation key is applied, the allocated time for the jobs is the same as the bundle time: 2, 3, and 5 hours.

In the following sections, you can see the calculated time if you apply one of the other allocation keys.

#### Estimation allocation key

Formula for calculating allocated time using:

Time per job = Total bundle time * (Estimated job time/Total estimated time)

Formula

Allocated time

Job 1

6 * (1/8) hours

0.75 hour

Job 2

6 * (3/8) hours

2.25 hours

Job 3

6 * (4/8) hours

3.00 hours

#### Jobs allocation key

Formula for calculating allocated time:

Time per job = Total bundle time / Number of jobs

Formula

Allocated time

Job 1

6/3

2 hours

Job 2

6/3

2 hours

Job 3

6/3

2 hours

#### Net time allocation key

Formula for calculating allocated time:

Calculated time per reporting = Bundle time / Number of jobs

09-10

1 hour

10-11

1 hour

11-13

2 hours

13-15

2 hours

Allocated time

Number of jobs

1

3

2

1

N/A

Job 1

1/1

= 1 hours

1/3

= 0.33 hours

N/A

N/A

1.33 hours

Job 2

N/A

1/3

= 0.33 hours

2/2

= 1 hours

N/A

1.33 hours

Job 3

N/A

1/3

= 0.33 hours

2/2

= 1 hours

2/1

= 2 hours

3.33 hours

#### Real time allocation key

In > > on the tab, you can clear the check box so that the production cost is calculated on the basis of actual employee pay.

The calculated payroll cost per hour is ordinarily multiplied with the hours calculated on each job.

Formula for calculating allocated time:

Actual time per job = Actual time in bundle

 Job 1 2 hours Job 2 3 hours Job 3 5 hours

Consider the 3 jobs performed by an employee with an hourly wage of 12.00 EURO. No overtime bonus or premiums are earned in the time that was spent on Jobs 1 - 3.

The employee has worked on these 3 bundled jobs for a total of 6 hours. The salary cost will then be 6 * 12.00 EURO = 72.00 EURO.

When you are using real time allocation, the cost per hour is recalculated with the factor from the formula. The actual time that was spent on each job is then transferred but with the corrected cost price per hour.

In the example, 6 hours are spent although 10 hours are allocated.

Formula for calculating cost:

Cost per hour = (Total bundle time per job (Net time) / Actual time per job) * Standard cost price per hour

Calculation of corrected cost per hour

Corrected cost per hour

Allocated time

Total cost of job

Job 1

(1.33/2) * 12.00 EURO

8.00 EURO

2 hours

16.00 EURO

Job 2

(1.33/3) * 12.00 EURO

5.33 EURO

3 hours

16.00 EURO

Job 3

(3.33/5) * 12.00 EURO

8.00 EURO

5 hours

40.00 EURO

The corrected cost per hour and the job time are posted in the production journal. Note

If you select the check box, the actual time for each job will be transferred to the production journal with the cost for the cost category of the specific job.