Allocation of overheads is always in arguments. It differs from company to company. However, the allocation Basis for different resources in Oracle ERP Systems is shown here as examples.
| Resource Class | Resource | Cost Component Class | Allocation Basis | Comments |
| Direct Labor | Labor | Direct Labor | Labor Hrs | – |
| Labor Overhead | Labor Overhead | Labor Overhead | Labor Hrs | – |
| Costing Resource | Granulation Costing Resource | Granulation Cost | Machine Hrs | The overheads related to Granulation will be captured based on the ‘Department’ segment in the COA |
| QAD | QAD | Quality Overhead | Machine Hrs | QAD cost can also be allocated on the basis of Quality hours. |
| Warehouse Overhead | Warehouse Overhead Resource | Warehouse Overhead | Machine Hrs | The allocation of Warehouse overhead to the product cost will be on the basis of the machine hours |
| GPO (General Plant Overhead) | GPO Resource | GPO | Machine Hrs | The allocation of Warehouse overhead to the product cost will be on the basis of the machine hours |
