USA Assignig labor cost in production of a part

[Allen Thomas]

I work for a small rubber manufacturing company where we extrude a line of several parts, but we also take some of those parts and cut them to a required length for the end user. In this cutting process we have both assembly laborers and non assembly laborers performing some of the tasks involved; by non assembly laborers I am referring to members of the quality department, shift supervisors, material handlers, etc.

We have a system in place where the time and function of each employee is tracked. It is my contention that to truly get an accurate cost of the finished part the time these non assembly laborers spend doing the work needs to be factored into the labor cost of these cut parts. My boss says that these workers aren't being paid for this function and that their time is covered in the burden that we alotted for that particular part. Can someone shed some light on this for me, and if I'm wrong please help me understand why.

Thank you.

 

[kirby]

1. Your contention is correct.
2. You have already asked the boss about this and boss has given you an answer
3. I strongly suggest you now leave this topic alone and do not raise it with the boss anymore because it has already been "asked and answered".