Hi Sho Ram,
Here are my inputs on how you can achieve this.
1- Plan all your direct and indirect overheads and perform the planning steps-allocate and assess the plant cost from non production cost centers to production cost centers. That way you should have all your direct and indirect overheads are part of your standard cost estimate.
2-Define your cost component structure by your cost elements and also activate primary cost component split.
3- For actuals, it should be the same procedure as plan. If you want allocate your plant general cost center variable cost based on production line labor hours, you can also leverage the template allocations. For fixed cost, you can directly use assessments.
4- Activate ML and Actual costing can be activated with 2- update activity relevant to price determination. That way you can achieve in absorbing the variances to product level during ML run.
This is very high level. Hope this helps you.
Thank you,
Srinath