Due to some consolidation in our workforce we are now having a salaried supervisior occasionally work on a machine in the direct manufacturing of a of our products.  We want to show this cost in the manufacturing process so as not to distort the product costs.
 
The supervisor turned in a time card for the time he spent on a machine and the payroll persons recorded his time in hours to the appropriate work orders.
 
I was horrified to find at the end of the month that all his time was multiplied by his salaried rate in the costing process.  A part that normally might  cost 50 cents was now showing a last cost of $95.00.
 
I have several questions.  First what is the best way to get the supervisors labor into the product.  Should we set up another employee number for the supervisor in the hourly employee category and use this number to enter time to the work orders?
 
Questions two thru 10 are how best to correct the problem.  We show over $100,000 worth of labor going into the costing system when the true total should a 10th of that.
 
What should we do about all the parts that now have an inflated last and/or average cost.
 
In General, what is the best way to handle our situation?
 
respectfully,
 
John Howard
Tri-Tec Company

And set up the supervisor with a 2nd code that has an appropriate hourly cost that any production time he does will be entered under.