Building Materials Manufacturing worked example

Raw Material Batch Cost at 110% cost share assigned to this product or order: a worked example

What does the result look like when cost share assigned to this product or order reaches 110%? The full calculation is worked below with real intermediate numbers. a plant needs to cost raw batch ingredients for one product, order, or production campaign

The inputs for this scenario

  • Raw material required for the batch: 1,200 tons (unchanged)
  • Delivered raw material cost: 42 $ / ton (unchanged)
  • Cost share assigned to this product or order: 110 % (raised for this scenario; the documented default is 100)
  • Fixed receiving, screening, storage, or setup cost: 650 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Allocated raw material batch cost = raw material required for the batch × delivered raw material cost × allocation share) to the inputs above produces each figure below.
  • At this operating point the engine returns 56,090 $ raw material cost for raw material batch cost, the number this scenario is built around.
  • At this operating point the engine returns 46.74 $ / piece for delivered raw material cost.
  • At this operating point the engine returns 55,440 $ for allocated raw material batch cost.
  • At this operating point the engine returns 650 $ for fixed receiving, screening, storage, or setup cost.

How this compares with the baseline

  • Against the tool's baseline example, where cost share assigned to this product or order sits at 100% and the headline result is 51,050 $ raw material cost, this scenario comes in 9.87% above the baseline at 56,090 $ raw material cost.
  • A figure at this level is achievable when cost share assigned to this product or order is genuinely sustained, not just peaked for a shift. It assumes a single blended delivered price per ton; if a batch draws from multiple raw streams at different prices, run it once per stream and sum the results.

Results at a glance

  • Raw Material Batch Cost: 56,090 $ raw material cost (headline result)
  • Delivered raw material cost: 46.74 $ / piece
  • Allocated raw material batch cost: 55,440 $
  • Fixed receiving, screening, storage, or setup cost: 650 $

Run it with your numbers

  • Every input above is editable in the live Raw Material Batch Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.