We are using IN-N-C Closed Work Order Costing as a quick check to make sure WOs are closed promptly.  We also use it to ensure that the reporting of setup and labor is accurate and we quickly scan the variances to verify this.
 
I think that the costs may be calculated incorrectly in IN-N-C
 
Say we have the Lot Size in RO-A set to 100, and have a Work Order Quantity of 1,000.  The setup cost as established in RO-A will still be the set up cost for the WO of 1,000 and JC-A Print Job Cost Report handles this correctly.
 
In IN-N-C it appears that the system calculates the set up cost for each part from the Lot Size in RO-A and then multiplies it by the WO Quantity and uses this figure as the Standard in IN-N-C.  It then takes the correct figure from JC-A and compares it to the incorrect figure in IN-N-C to give an incorrect and misleading variance.
 
For example,  
 
RO-A set up cost for 100 pieces is, say $100.  (Set up cost for work order of 1,000 pieces is also $100)
 
Set up cost per piece for 1,000 pieces is $100/1,000 = $0.10 as used in JC-A.
 
Total set up cost in JC-A is 1,000 x $0.10 = $100, which is correct.
 
But it appears in IN-N-C that the set up cost per piece uses the RO-A Lot Size, so set up cost is $100/100 = $1 each.
 
Set up cost for 1,000 is 1,000 x 1 = $1,000, and this is used by IN-N-C as the standard value.
 
Now in IN-N-C the actual set up cost will appear as $100 (taken from JC-A) and will be compared to the (incorrect) Standard of $1,000 to give a variance of -$900.
 
Anyone have any comments or have you encountered the same problem?
 
I assume that this can be fixed easily and I do find this as useful tool for a quick spot check.