What goes into product usage calculations in the product-site totals tab?

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I'm trying to figure out the mechanics of the product-site usage totals where statistical reordering uses this value in its calculation of the EOQ. I have an example that is behaving unexpectedly and messing up the calculated EOQ:

Let's take a component that is not sold, only used in a work order. The production BOM takes two of this component and what comes out is a single finished good that is sold. It appears that X3 is using the sales of the parent finished good IN ADDITION to the work order usage to calculate the EOQ. I would not expect that X3 would double dip here but it appears that is what is happening.

Note that we do not tie work orders to sales orders (made to order). We build to stock. I see no parameter to turn off this double dipping on usage.