Enter the cost of direct materials, cost of direct labor, and overhead costs into the calculator to determine the total manufacturing cost.
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Total Manufacturing Cost Formula
The following formula is used to calculate a total manufacturing cost.
MC = RM + DL + OH
- Where MC is the total manufacturing cost
- RM is the raw material cost
- DL is the direct labor cost
- OH is the manufacturing overhead cost
Total Manufacturing Cost Definition
A total manufacturing cost is the sum of the cost of raw material, direct labor, and manufacturing overhead.
Total Manufacturing Cost Example
How to calculate total manufacturing cost?
- First, determine the cost of raw material.
Evaluate the total cost of the raw material that went into the product.
- Next, determine the direct labor.
Evaluate and determine the total value of the labor that went into producing the good.
- Next, determine the overhead.
Determine the additional overhead cost associated with the operation.
- Finally, calculate the total manufacturing cost.
Add together all the values from steps 1-3 to find the total cost.
Total manufacturing cost is the total cost associated with producing a good including raw material, labor, and overhead.