
Factory Costs - Definition, Example, How to Calculate?
Direct Labor Cost = $20 * $100000 = $2000000. Calculation of Manufacturing Cost will be –. Manufacturing Cost = $100000 + $50000 + $240000 = $390000. Calculation of Factory Cost will be –. The Factory utility bills, Production supplies and Factory Rent paid are the expense that is directly linked to the production, so it is included in