HVAC Ductwork, Air Handling & Mechanical Products worked example

Cost Per Unit at 138% overhead and burden factor: a worked example

Push overhead and burden factor up to 138% and the picture changes. This example computes every intermediate figure at that operating point. Use this when building a quote for ductwork fabrication or AHU supply and you need a defensible cost per section, cost per fitting, or cost per air handling unit that includes material, labor, overhead, and fixed project charges. Compare against your target sell price to check margin before submitting.

The inputs for this scenario

  • Number of duct sections or units: 80 units (unchanged)
  • Material cost per unit: 42 $ / unit (unchanged)
  • Overhead and burden factor: 138 % (raised for this scenario; the documented default is 120)
  • Fixed project cost allocation: 600 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Total variable cost = units × material cost per unit × overhead factor) to the inputs above produces each figure below.
  • At this operating point the engine returns 5,237 $ for weighted cost, the number this scenario is built around.
  • At this operating point the engine returns 65.46 $ / piece for per piece value.
  • At this operating point the engine returns 4,637 $ for captured value.
  • At this operating point the engine returns 600 $ for fixed adjustment.

How this compares with the baseline

  • Against the tool's baseline example, where overhead and burden factor sits at 120% and the headline result is 4,632 $, this scenario comes in 13.06% above the baseline at 5,237 $.
  • It computes the fully loaded cost per duct unit by applying an overhead and burden factor to material cost, adding a fixed project allocation, and dividing across the unit count. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Weighted cost: 5,237 $ (headline result)
  • Per piece value: 65.46 $ / piece
  • Captured value: 4,637 $
  • Fixed adjustment: 600 $

Run it with your numbers

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

Last reviewed 2026-05-12.