Foundry & Forging worked example
Casting Lot Cost at 110% lot cost allocation: a worked example
What does the result look like when lot cost allocation reaches 110%? The full calculation is worked below with real intermediate numbers. Use it when quoting a lot, comparing suppliers, setting minimum order quantities, or reviewing actual cost versus estimate.
The inputs for this scenario
- Castings in the lot: 240 castings (unchanged)
- Variable cost per casting: 68 $ / casting (unchanged)
- Lot cost allocation: 110 % (raised for this scenario; the documented default is 100)
- Fixed lot setup cost: 1,800 $ (unchanged)
Working through the calculation
- Applying the documented formula (Total casting lot cost = castings in the lot × variable cost per casting × lot cost allocation + fixed lot setup cost) to the inputs above produces each figure below.
- At this operating point the engine returns 19,752 $ for total casting lot cost, the number this scenario is built around.
- At this operating point the engine returns 82.3 $ / piece for cost per casting.
- At this operating point the engine returns 17,952 $ for variable casting lot cost.
- At this operating point the engine returns 1,800 $ for fixed lot setup cost.
How this compares with the baseline
- Against the tool's baseline example, where lot cost allocation sits at 100% and the headline result is 18,120 $, this scenario comes in 9.01% above the baseline at 19,752 $.
- A figure at this level is achievable when lot cost allocation is genuinely sustained, not just peaked for a shift. It assumes a flat variable cost per casting, but real per-piece cost shifts with yield, scrap rate, and metal price, so update the variable figure as those move.
Results at a glance
- Total casting lot cost: 19,752 $ (headline result)
- Cost per casting: 82.3 $ / piece
- Variable casting lot cost: 17,952 $
- Fixed lot setup cost: 1,800 $
Run it with your numbers
- Every input above is editable in the live Casting Lot Cost calculator, which recalculates instantly and can be shared with the inputs intact.
Last reviewed 2026-05-12.