@saneekaw as far as I know Shop Order Costing will never use any of the salary information of the employee file in HR module. That’s why the horuly rate in the Labor Class must be set to also account for the times when the employee does some overtime and is compensated at a different rate.

In your case, if you think that per week the employee will do an average of 10 hrs overtime, then your hourly rate for the Labor Class would be (assuming a 40 hrs work week):

((40 * 10) + (10 * 15)) / 40 =  13.75

I guess this is the max level of accuracy that you can get. Not to mention, that different shop floor employees could have a slightly different compensation package, so in the Labor Class you must try and get an average hourly cost for that worker type.

@saneekaw It is not possible to charge the overtime costs to the operation that the employee happened to perform during the overtime. Wouldn’t it be a bit strange too? I mean, why would the finished product that you happened to produce during the overtime have a higher actual cost than products produced during normal hours?

Anyway, the hourly cost rate for labor can be fetched from a number of different sources. See below from Cost for Shop Order Labor Reports documentation:

If you want to see what shop order operations that where performed during the overtime you can use the page Labor Result per Wage Code. This page is only populated if Base Labor Result on Attendance is enabled for the site (meaning only shop order labor time that is reported during a valid attendance interval is counted).

@Björn Hultgren and @Marcel.Ausan Thank you very much for the reply.