Total Manufacturing Cost Calculator

Formula

The formula to calculate the Total Manufacturing Cost (MC) is:

\[ MC = RM + DL + OH \]

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 ($)

What is Total Manufacturing Cost?

Total manufacturing cost is the sum of the cost of raw materials, direct labor, and manufacturing overhead. It represents the total expense incurred to produce goods.

Example Calculation

Let's assume the following values:

Raw Material Cost (RM) = $20,000
Direct Labor Cost (DL) = $15,000
Manufacturing Overhead Cost (OH) = $10,000

Using the formula to calculate the Total Manufacturing Cost:

\[ MC = 20,000 + 15,000 + 10,000 = 45,000 \]

The Total Manufacturing Cost is $45,000.