Production Batch Costing
Total batch cost and cost per good unit from materials, labour, machine time, setup, overhead and scrap.
Inputs
units
h
per h
h
per h
%
%
Results
- Cost per good unit
- 1.4047
- Total batch cost
- 6,812.6
- Direct cost
- 5,924
- Good units
- 4,850 units
Formula
Direct = materials + labour h × rate + machine h × rate + setup
Total = Direct × (1 + overhead)
Cost per good unit = Total ÷ (batch × (1 − scrap))
Assumptions & limits
- Scrapped units carry full cost and no salvage value.
Worked example
4,200 + 704 + 720 + 300 = 5,924 × 1.15 = 6,812.60 ÷ 4,850 good = 1.4047.