HVAC Ductwork, Air Handling & Mechanical Products worked example

Cost Per Unit at 86% overhead and burden factor: a worked example

Suppose overhead and burden factor falls to 86%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate cost per duct section, fitting, or air handling unit. Combine material cost per unit, fabrication labor rate, an overhead and burden factor, and fixed project costs to calculate a total and a per-unit cost for quoting and job cost comparison.

The inputs for this scenario

  • Number of duct sections or units: 80 units (held at the documented default)
  • Material cost per unit: 42 $ / unit (held at the documented default)
  • Overhead and burden factor: 86 % (the input this scenario stresses; the baseline uses 120)
  • Fixed project cost allocation: 600 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Total variable cost = units × material cost per unit × overhead factor.
  • Weighted cost works out to 3,490 $ at these inputs, and this is the headline figure for the scenario.
  • Per piece value works out to 43.62 $ / piece at these inputs.
  • Captured value works out to 2,890 $ at these inputs.
  • Fixed adjustment works out to 600 $ at these inputs.

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 24.66% below the baseline at 3,490 $.
  • 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. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Weighted cost: 3,490 $ (headline result)
  • Per piece value: 43.62 $ / piece
  • Captured value: 2,890 $
  • Fixed adjustment: 600 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Cost Per Unit calculator, set overhead and burden factor to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.