Production Cost Calculator

✖Total Fixed Costs represent the sum of all expenses that do not change with the level of production or sales, such as rent and salaries.ⓘ Total Fixed Costs [TFC]			+10% -10%
✖Total Variable Costs encompass all expenses that vary with the level of production or sales, such as raw materials and direct labor.ⓘ Total Variable Costs [TVC]			+10% -10%

✖Production Cost refers to the total expenses incurred in manufacturing a product or providing a service, including materials, labor, and overhead.ⓘ Production Cost [PC]

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Production Cost

Formula

`"PC" = "TFC"+"TVC"`

Example

`"13750"="4985"+"8765"`

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Production Cost Solution

STEP 0: Pre-Calculation Summary

Formula Used

Production Cost = Total Fixed Costs+Total Variable Costs
PC = TFC+TVC
This formula uses 3 Variables

Variables Used

Production Cost - Production Cost refers to the total expenses incurred in manufacturing a product or providing a service, including materials, labor, and overhead.
Total Fixed Costs - Total Fixed Costs represent the sum of all expenses that do not change with the level of production or sales, such as rent and salaries.
Total Variable Costs - Total Variable Costs encompass all expenses that vary with the level of production or sales, such as raw materials and direct labor.

STEP 1: Convert Input(s) to Base Unit

Total Fixed Costs: 4985 --> No Conversion Required
Total Variable Costs: 8765 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PC = TFC+TVC --> 4985+8765

Evaluating ... ...

PC = 13750

STEP 3: Convert Result to Output's Unit

13750 --> No Conversion Required

FINAL ANSWER

13750 <-- Production Cost

(Calculation completed in 00.004 seconds)

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Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Aashna

IGNOU (IGNOU), India

Aashna has verified this Calculator and 25+ more calculators!

< 25 Cost Accounting Calculators

Material Cost Variance

Go Material Cost Variance = (Standard Quality for Actual Output*Standard Price)-(Actual Quantity*Actual Price)

Labour Cost Variance

Go Labour Cost Variance = (Standard Hours for Actual Output*Standard Rate)-(Actual Hours*Actual Rate)

Revised Standard Quantity

Go Revised Standard Quantity = (Standard Quantity of each Material/Total Standard Quantity)*Total Actual Quantity

Learning Curve

Go Learning Curve = (Time Taken to Produce Initial Quantity*Cumulative Number of Batches)^(-Learning Coefficient)

Labour Efficiency Variance

Go Labour Efficiency Variance = Standard Rate*(Standard Time-Actual Time)*Variance

Time to Receive

Go Time to Receive = Time for Stock Validation+Time to Add Stock to Records+Time to Prep Stock for Storage

Labour Rate Variance

Go Labour Rate Variance = Actual Time*(Standard Rate-Actual Rate)*Variance

Cycle Time

Go Cycle Time = Process Time+Inspection Time+Move Time+Queue Time

Revised Standard Hours of Labours

Go Revised Standard Hours of Labours = (Actual Mix/Standard Mix)*(Standard Hours of Labour)

Material Yield Variance

Go Material Yield Variance = (Actual Unit Usage-Standard Unit Usage)*Standard Cost per Unit

Overall Equipment Effectiveness

Go Overall Equipment Effectiveness = Good Count*Ideal Cycle Time/Planned Production Time

Avoided Cost

Go Avoided Costs = Assumed Repair Cost+Production Losses-Preventative Maintenance Cost

Material Usage Variance

Go Material Usage Variance = Standard Price*(Actual Quantity Units-Standard Quantity)

Labour Mix Variance

Go Labour Mix Variance = Standard Rate*(Reversed Standard Rate-Actual Time)

Material Price Variance

Go Material Price Variance = Actual Quantity*(Standard Price-Actual Price)

Material Quantity

Go Material Quantity = Standard Price*(Standard Quantity-Actual Quantity)

Customer Acquisition Cost

Go Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired

Total Addressable Market

Go Total Addressable Market = Annual Contract Value per Client*Number of Potential Clients

First Pass Yield

Go First Pass Yield = Number of Good Products Finished/Number of Production Orders Started

Average Days Delinquent

Go Average Days Delinquent = Days Sales Outstanding-Best Possible Days Sales Outstanding

Backorder Rate

Go Backorder Rate = (Number of Undeliverable Orders/Total Number of Orders)

Monthly Recurring Revenue

Go Monthly Recurring Revenue = Number of Customers*Average Billed Amount

Sell -Through Rate

Go Sell Through Rate = Number of Units Sold/Number of Units Received

Takt Time

Go Takt Time = Production Available Time/Customer Demand

On-Time Delivery

Go On-Time Delivery = On Time Units/Total Units

< 16 Important Formulas of Cost Accounting Calculators

Labour Cost Variance

Go Labour Cost Variance = (Standard Hours for Actual Output*Standard Rate)-(Actual Hours*Actual Rate)

Learning Curve

Go Learning Curve = (Time Taken to Produce Initial Quantity*Cumulative Number of Batches)^(-Learning Coefficient)

Labour Efficiency Variance

Go Labour Efficiency Variance = Standard Rate*(Standard Time-Actual Time)*Variance

Overall Equipment Effectiveness

Go Overall Equipment Effectiveness = Good Count*Ideal Cycle Time/Planned Production Time

Cost of Goods Sold

Go Cost of Goods Sold = Beginning Inventory+Purchases During the Period-Ending Inventory

Material Usage Variance

Go Material Usage Variance = Standard Price*(Actual Quantity Units-Standard Quantity)

Noria Effect

Go Noria Effect = (New Hires Salary Cost-Leavers Salary Cost)/Previous Salary Cost

Customer Acquisition Cost

Go Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired

Total Addressable Market

Go Total Addressable Market = Annual Contract Value per Client*Number of Potential Clients

Backorder Rate

Go Backorder Rate = (Number of Undeliverable Orders/Total Number of Orders)

Conversion Cost

Go Conversion Cost = Direct Labour Cost+Manufacturing Overhead Cost

Production Cost

Go Production Cost = Total Fixed Costs+Total Variable Costs

Prime Cost

Go Prime Cost = Direct Materials Cost+Direct Labour Cost

Takt Time

Go Takt Time = Production Available Time/Customer Demand

On-Time Delivery

Go On-Time Delivery = On Time Units/Total Units

Unit Cost

Go Unit Cost = Total Cost/Total Units Produced

Production Cost Formula

Production Cost = Total Fixed Costs+Total Variable Costs
PC = TFC+TVC

What is Production Cost ?

Production cost refers to the aggregate expenditure incurred in creating goods or providing services within a specific period. It encompasses various elements, including raw materials, labor wages, utilities, equipment depreciation, and factory overheads. Raw material costs pertain to the expense of acquiring inputs necessary for production, while labor costs include wages, benefits, and training expenses for employees directly involved in manufacturing. Utilities like electricity, water, and fuel are essential for operating machinery and maintaining a production environment. Equipment depreciation accounts for the gradual reduction in value of machinery and tools used in production processes. Factory overheads cover miscellaneous expenses like rent, insurance, maintenance, and administrative costs associated with running the production facility.

How to Calculate Production Cost?

Production Cost calculator uses Production Cost = Total Fixed Costs+Total Variable Costs to calculate the Production Cost, The Production Cost refers to the total expenses incurred in manufacturing a product or providing a service, including materials, labor, and overhead. Production Cost is denoted by PC symbol.

How to calculate Production Cost using this online calculator? To use this online calculator for Production Cost, enter Total Fixed Costs (TFC) & Total Variable Costs (TVC) and hit the calculate button. Here is how the Production Cost calculation can be explained with given input values -> 13750 = 4985+8765.

FAQ

What is Production Cost?

The Production Cost refers to the total expenses incurred in manufacturing a product or providing a service, including materials, labor, and overhead and is represented as PC = TFC+TVC or Production Cost = Total Fixed Costs+Total Variable Costs. Total Fixed Costs represent the sum of all expenses that do not change with the level of production or sales, such as rent and salaries & Total Variable Costs encompass all expenses that vary with the level of production or sales, such as raw materials and direct labor.

How to calculate Production Cost?

The Production Cost refers to the total expenses incurred in manufacturing a product or providing a service, including materials, labor, and overhead is calculated using Production Cost = Total Fixed Costs+Total Variable Costs. To calculate Production Cost, you need Total Fixed Costs (TFC) & Total Variable Costs (TVC). With our tool, you need to enter the respective value for Total Fixed Costs & Total Variable Costs and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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