Overhead (OH)

aPriori determines a direct and indirect OH hourly rate for each machine by region, following the methodology below.

The following chart shows the sources for data that are used in the overhead model.

aPriori’s Bottom-Up Overhead Model

*By default aPriori accounts for facilities cost in Indirect Overhead; a VPE level switch is available to account for in facilities cost in Direct Overhead

**By default aPriori does not estimate annual supplies for a workcenter; customers can populate data in their VPE

Type of Overhead

Source

Direct Overhead	 Cost of Energy to power the machines - Machine Power - Electricity rates  Imputed Interest  Machine Depreciation (including the cost of installation)  Machine maintenance	 Machine Manufacturers and Resellers  Kerkhoff, Europe’s Energy Portal, US Energy Information Administration, Anneel (the Brazil Electricity Regulatory Agency).  OECD  World Bank
Indirect Overhead	 Facility Costs - Building Depreciation - Property Taxes - Insurance - Utility Costs (not including energy to power the machines  Support Services - Direct Wages, Benefits & Social Overhead - Allocation per machine	 NIA Global (Commercial Real Estate Services Provider)  Kerkhoff  US Energy Information Administration, Europe’s Energy Portal  Consultation with Manufacturing Accounting Experts  Kerkhoff, BLS, Eurostats, and other national labor statistics bureaus  Consultation with Manufacturing Accounting Experts