cost of building factory unit
To do this, the company would simply divide its total forecasted factory overhead cost ($60,000) BY the number of units it plans to produce in 200X (10,000 units). Below charts these calculations: Therefore, for every unit the XYZ Company makes, it will spend $6.00 on factory overhead.60,000. As you can see, the XYZ Company is forecasting its Total Factory Overhead at $60,000 in 200X. In other words, to produce 10,000 units in 200X, the XYZ Company expects its Manufacturing Plant Expenses will be $60,000.