Gypsum, Drywall & Interior Panel Manufacturing worked example

Cost Per Board at 92% overhead absorption rate: a worked example

This scenario runs the cost per board calculation on the strong side: 92% overhead absorption rate, with every other input held at its documented default. Use it when setting a board price or reviewing the cost stack to confirm that overhead absorption is not eroding margin on a high-volume run.

The inputs for this scenario

  • Boards produced per run: 100 boards (unchanged)
  • Variable cost per board: 45 $ / board (unchanged)
  • Overhead absorption rate: 92 % (raised for this scenario; the documented default is 80)
  • Fixed overhead per run: 250 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable board cost = boards produced x variable cost per board x overhead absorption rate) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,390 $ / board for weighted cost, the number this scenario is built around.
  • At this operating point the engine returns 43.9 $ / piece for per piece value.
  • At this operating point the engine returns 4,140 $ for captured value.
  • At this operating point the engine returns 250 $ for fixed adjustment.

How this compares with the baseline

  • Against the tool's baseline example, where overhead absorption rate sits at 80% and the headline result is 3,850 $ / board, this scenario comes in 14.03% above the baseline at 4,390 $ / board.
  • Use it when costing a production run, validating a standard cost, or testing how an absorption-rate change moves the loaded cost before a price update. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Weighted cost: 4,390 $ / board (headline result)
  • Per piece value: 43.9 $ / piece
  • Captured value: 4,140 $
  • Fixed adjustment: 250 $

Run it with your numbers

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

Last reviewed 2026-05-12.