Enter the total number of parts and the total production cost ($) into the Calculator. The calculator will evaluate the Part Cost. 

Part Cost Formula

PC = TC/P

Variables:

  • PC is the Part Cost ($/unit)
  • TC is the total production cost ($)
  • P is the total number of parts

To calculate the Part Cost, divide the product cost by the number of parts.

How to Calculate Part Cost?

The following steps outline how to calculate the Part Cost.

  1. First, determine the total number of parts. 
  2. Next, determine the total production cost ($)`. 
  3. Next, gather the formula from above = PC = TC / P.
  4. Finally, calculate the Part Cost.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

total number of parts = 3000

total production cost ($)` = 1200