Sheet metal products: how to calculate production cost ...
MACHINING COST = 77,3 * 12 / 0,805 / 3600 = 0,32 Euro. So the total direct cost of the production for one piece is: And in our example: TOTAL PRODUCT COST IN MACHINE 1 = 1,91 + 0,32 = 2,23 Euro. In this case, the cost of the machining represents just the 14% of the total cost of the product, where the raw material represent the remaining 86%.