How we calculate

Unit cost = (materials + labour + allocated overhead) / units. You choose the overhead allocation.

Worked example

These illustrative inputs let you check the method. They are not figures for a real company or automatically current tax rates.

Inputs

Materials

5,000

Labour

3,000

Allocated overhead

2,000

Number of units

100

Results

Cost per unit

100

Total cost

10,000

Direct cost

8,000

Change assumptions in the calculator and compare outcomes. Money follows your input unit; figures from different periods need adjustment before comparison.