Activity Type ---------------kp26 --------------------Suggest

Question

Hi all
can any one give good suggestion ..
my client is asking activity type planning not fixed
we have 4 activity type
1) Labour -K.G
2) Labour -Inch
3) Machine Hour-
4) Labour Cost Area
But main problem
when we plan in KP26
There is plan in labour wise
because one labour is taking some amount
other labour is taking another amount like 
pls suggest me
it is very urgent
where can plan

Answer 1

HI Supriya,
You plan activity-dependent primary costs as follows on a cost center(s)/cost center group:
By cost element(s)/cost element group
Based on the activity type(s)/activity type group
This means that you can plan a fixed amount and a variable amount for your primary costs. Variable costs are the costs incurred in producing a given activity, proportional to the quantity of activity produced. You can calculate target costs based on the costs split and the operating rate (actual activity quantity related to the plan activity quantity). Target costs for costs planned by value are comprised of:
Plan fixed costs
Plan variable costs adapted to the actual operating level (= target costs of the actual operating level)
Example:
To produce 1000 hours of activity type FST, costs of $400,000 are required. This amount represents the variable costs. The portion of fixed costs, $200,000, is incurred irrespective of the activity quantity.
For activity-dependent costs, which are planned based on quantity, the following formulas apply:
Variable target quantity = Variable plan quantity X Operating rate
Fixed target costs = Fixed target quantity X Fixed price
+ Variable target quantity X Fixed price
+ Fixed target quantity X Variable price
Variable target costs = Variable target quantity X Variable price
If useful give me points.
Venkat