Enter the direct labor costs ($), the material cost ($), the number of units produced, and the total variable and fixed manufacturing overhead ($) into the Absorption Cost Calculator. The calculator will evaluate and display the Absorption Cost. ## Absorption Cost Formula The following formula is used to calculate the Absorption Cost. AC = (DL + MC + O) / U • Where AC is the Absorption Cost ($/unit)
• DL is the direct labor costs ($) • MC is the material cost ($)