## Unit Cost Solution

STEP 0: Pre-Calculation Summary
Formula Used
Unit Cost = Total Cost/Total Units Produced
UC = TC/TUP
This formula uses 3 Variables
Variables Used
Unit Cost - Unit Cost refers to the average cost incurred to produce a single unit of a product, calculated by dividing total production costs by the number of units produced.
Total Cost - Total Cost is the sum of all expenses incurred in the production and delivery of goods or services, including both fixed and variable costs.
Total Units Produced - Total Units Produced is the complete quantity of goods manufactured during a specific period.
STEP 1: Convert Input(s) to Base Unit
Total Cost: 56500 --> No Conversion Required
Total Units Produced: 950 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
UC = TC/TUP --> 56500/950
Evaluating ... ...
UC = 59.4736842105263
STEP 3: Convert Result to Output's Unit
59.4736842105263 --> No Conversion Required
59.4736842105263 59.47368 <-- Unit Cost
(Calculation completed in 00.004 seconds)
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## Credits

Created by Keerthika Bathula
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## < 25 Cost Accounting Calculators

Material Cost Variance
Material Cost Variance = (Standard Quality for Actual Output*Standard Price)-(Actual Quantity*Actual Price)
Labour Cost Variance
Labour Cost Variance = (Standard Hours for Actual Output*Standard Rate)-(Actual Hours*Actual Rate)
Revised Standard Quantity
Revised Standard Quantity = (Standard Quantity of each Material/Total Standard Quantity)*Total Actual Quantity
Learning Curve
Learning Curve = (Time Taken to Produce Initial Quantity*Cumulative Number of Batches)^(-Learning Coefficient)
Labour Efficiency Variance
Labour Efficiency Variance = Standard Rate*(Standard Time-Actual Time)*Variance
Time to Receive = Time for Stock Validation+Time to Add Stock to Records+Time to Prep Stock for Storage
Labour Rate Variance
Labour Rate Variance = Actual Time*(Standard Rate-Actual Rate)*Variance
Cycle Time
Cycle Time = Process Time+Inspection Time+Move Time+Queue Time
Revised Standard Hours of Labours
Revised Standard Hours of Labours = (Actual Mix/Standard Mix)*(Standard Hours of Labour)
Material Yield Variance
Material Yield Variance = (Actual Unit Usage-Standard Unit Usage)*Standard Cost per Unit
Overall Equipment Effectiveness
Overall Equipment Effectiveness = Good Count*Ideal Cycle Time/Planned Production Time
Avoided Cost
Avoided Costs = Assumed Repair Cost+Production Losses-Preventative Maintenance Cost
Material Usage Variance
Material Usage Variance = Standard Price*(Actual Quantity Units-Standard Quantity)
Labour Mix Variance
Labour Mix Variance = Standard Rate*(Reversed Standard Rate-Actual Time)
Material Price Variance
Material Price Variance = Actual Quantity*(Standard Price-Actual Price)
Material Quantity
Material Quantity = Standard Price*(Standard Quantity-Actual Quantity)
Customer Acquisition Cost
Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired
Total Addressable Market = Annual Contract Value per Client*Number of Potential Clients
First Pass Yield
First Pass Yield = Number of Good Products Finished/Number of Production Orders Started
Average Days Delinquent
Average Days Delinquent = Days Sales Outstanding-Best Possible Days Sales Outstanding
Backorder Rate
Backorder Rate = (Number of Undeliverable Orders/Total Number of Orders)
Monthly Recurring Revenue
Monthly Recurring Revenue = Number of Customers*Average Billed Amount
Sell -Through Rate
Sell Through Rate = Number of Units Sold/Number of Units Received
Takt Time
Takt Time = Production Available Time/Customer Demand
On-Time Delivery
On-Time Delivery = On Time Units/Total Units

## < 16 Important Formulas of Cost Accounting Calculators

Labour Cost Variance
Labour Cost Variance = (Standard Hours for Actual Output*Standard Rate)-(Actual Hours*Actual Rate)
Learning Curve
Learning Curve = (Time Taken to Produce Initial Quantity*Cumulative Number of Batches)^(-Learning Coefficient)
Labour Efficiency Variance
Labour Efficiency Variance = Standard Rate*(Standard Time-Actual Time)*Variance
Overall Equipment Effectiveness
Overall Equipment Effectiveness = Good Count*Ideal Cycle Time/Planned Production Time
Cost of Goods Sold
Cost of Goods Sold = Beginning Inventory+Purchases During the Period-Ending Inventory
Material Usage Variance
Material Usage Variance = Standard Price*(Actual Quantity Units-Standard Quantity)
Noria Effect
Noria Effect = (New Hires Salary Cost-Leavers Salary Cost)/Previous Salary Cost
Customer Acquisition Cost
Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired
Total Addressable Market = Annual Contract Value per Client*Number of Potential Clients
Backorder Rate
Backorder Rate = (Number of Undeliverable Orders/Total Number of Orders)
Conversion Cost
Conversion Cost = Direct Labour Cost+Manufacturing Overhead Cost
Production Cost
Production Cost = Total Fixed Costs+Total Variable Costs
Prime Cost
Prime Cost = Direct Materials Cost+Direct Labour Cost
Takt Time
Takt Time = Production Available Time/Customer Demand
On-Time Delivery
On-Time Delivery = On Time Units/Total Units
Unit Cost
Unit Cost = Total Cost/Total Units Produced

## Unit Cost Formula

Unit Cost = Total Cost/Total Units Produced
UC = TC/TUP

## What is Unit Cost ?

Unit cost, often referred to as cost per unit, is a crucial financial metric that encapsulates the average expenditure associated with producing each individual unit of a product or service. This figure is derived by dividing the total production costs, which encompass both fixed and variable expenses incurred during manufacturing, by the total number of units produced within a specific timeframe. The significance of unit cost lies in its ability to inform pricing strategies, facilitate profitability analysis, and guide effective cost management practices within an organization. By understanding the cost per unit, businesses can make informed decisions regarding pricing structures, identify areas for cost optimization and efficiency improvement, and ultimately enhance their overall financial performance and competitive positioning in the market.

## How to Calculate Unit Cost?

Unit Cost calculator uses Unit Cost = Total Cost/Total Units Produced to calculate the Unit Cost, The Unit Cost refers to the average cost incurred to produce a single unit of a product, calculated by dividing total production costs by the number of units produced. Unit Cost is denoted by UC symbol.

How to calculate Unit Cost using this online calculator? To use this online calculator for Unit Cost, enter Total Cost (TC) & Total Units Produced (TUP) and hit the calculate button. Here is how the Unit Cost calculation can be explained with given input values -> 59.47368 = 56500/950.

### FAQ

What is Unit Cost?
The Unit Cost refers to the average cost incurred to produce a single unit of a product, calculated by dividing total production costs by the number of units produced and is represented as UC = TC/TUP or Unit Cost = Total Cost/Total Units Produced. Total Cost is the sum of all expenses incurred in the production and delivery of goods or services, including both fixed and variable costs & Total Units Produced is the complete quantity of goods manufactured during a specific period.
How to calculate Unit Cost?
The Unit Cost refers to the average cost incurred to produce a single unit of a product, calculated by dividing total production costs by the number of units produced is calculated using Unit Cost = Total Cost/Total Units Produced. To calculate Unit Cost, you need Total Cost (TC) & Total Units Produced (TUP). With our tool, you need to enter the respective value for Total Cost & Total Units Produced and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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