Product unit cost
Allocate materials, labor and batch overhead across usable finished units.
Your starting point
LOCAL · PRIVATESample values are filled in. Change them to make this your own.
A little more clarity
RESULTYour result will appear here.
Run the sample to see how it works.Use this tool
- Enter materials, labor hours, labor rate and overhead for one batch.
- Enter total units made and rejected units.
- Calculate the cost allocated to each usable unit.
Reading your result
Usable units exclude rejects. All entered costs are spread over the remaining units, so more rejects raise unit cost.
How this works
Batch cost ÷ (units made − rejected units).
Use the units shown beside each field. For monetary amounts, use one currency throughout; calculations do not convert currencies. Results normally display up to two decimal places. Nonzero values below 0.01 use up to six significant digits; values below 0.000001 use scientific notation (for example, 1E-7 means 0.0000001). Rankings use unrounded values, so displayed scores can look equal without being tied. CSV downloads retain numeric precision. Monetary rounding uses half-away-from-zero. Inputs or results beyond supported precision are rejected.
Assumptions & limits
All batch costs are allocated to usable units. Rejected units must be fewer than units made.
Required numeric fields reject blank, malformed and out-of-range values; negative values are allowed only for inventory position. Whole quantities are validated where units must be indivisible.
Results are planning aids based on the values you enter. Check important decisions and documents before using or sharing them.
