# M3 Standard Cost Rollup Calculator > Source: https://netray.co/tools/m3-standard-cost-rollup-calculator > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer Roll up a single-level unit cost and see how lot size changes the setup cost per piece. ## Category infor-cloudsuite ## Erp Infor M3 ## Audience - M3 consultant - Cost accountant - Manufacturing finance ## Tool **Kind:** calculator **Inputs:** #### Costing lot size **Key:** lot **Type:** slider **Default:** 100 **Min:** 1 **Max:** 500 **Step:** 1 **Unit:** pcs #### Material cost per piece **Key:** mat_cost **Type:** number **Default:** 14.8 **Min:** 0 **Step:** 0.1 **Unit:** $ #### Scrap allowance **Key:** scrap **Type:** number **Default:** 3 **Min:** 0 **Max:** 50 **Step:** 0.5 **Unit:** % #### Setup hours per lot **Key:** setup_hours **Type:** number **Default:** 1.5 **Min:** 0 **Step:** 0.25 **Unit:** hours #### Run minutes per piece **Key:** run_min **Type:** number **Default:** 5 **Min:** 0 **Step:** 0.1 **Unit:** minutes #### Labor rate **Key:** labor_rate **Type:** number **Default:** 28 **Min:** 0 **Step:** 1 **Unit:** $/hour #### Machine rate **Key:** mach_rate **Type:** number **Default:** 35 **Min:** 0 **Step:** 1 **Unit:** $/hour #### Overhead on conversion cost **Key:** oh_pct **Type:** number **Default:** 40 **Min:** 0 **Step:** 5 **Unit:** % **Outputs:** #### Material incl. scrap **Key:** material **Expr:** mat_cost * (1 + scrap / 100) **Format:** currency #### Setup cost per piece **Key:** setup_unit **Expr:** setup_hours * (labor_rate + mach_rate) / lot **Format:** currency #### Run cost per piece **Key:** run_unit **Expr:** run_min / 60 * (labor_rate + mach_rate) **Format:** currency #### Overhead per piece **Key:** oh_unit **Expr:** (setup_unit + run_unit) * oh_pct / 100 **Format:** currency #### Standard unit cost **Key:** unit_cost **Expr:** material + setup_unit + run_unit + oh_unit **Format:** currency **Primary:** true #### Total lot cost **Key:** lot_cost **Expr:** unit_cost * lot **Format:** currency **Primary:** true **Chart:** #### Unit cost and setup cost per piece vs lot size **Type:** line **X:** lot **From:** 1 **To:** 500 **Steps:** 40 **Series:** - unit_cost - setup_unit **Disclaimer:** Single-level illustration. Multi-level costing sums component costs from the bottom of the structure and may apply different overhead bases. ## Content **Intro:** Before anyone argues about a cost variance, someone has to be able to reproduce the standard. This calculator builds a single-level unit cost from material, scrap, setup, run and overhead, and shows how strongly lot size drives it. **Sections:** #### How to use it **Body:** Enter the costing lot size and the material cost per piece, then the scrap allowance, setup and run times, labor and machine rates and the overhead percentage you apply to conversion cost. The calculator gives each cost component per piece and the total lot cost. Move the lot size slider to see the setup cost per piece fall as the lot grows, and compare the rollup against what your costing run produces for the same item. **Bullets:** - Use the same lot size as your costing setup - Rates should match those in the cost centre master data - Add outside processing separately if applicable - Compare to the system result before trusting either #### The calculation **Body:** Material including scrap is material cost times (1 plus scrap percent). Setup per piece is setup hours times combined labor and machine rate divided by the lot size. Run cost per piece is run minutes divided by 60 times the combined rate. Overhead is applied as a percentage on setup plus run conversion cost. The standard unit cost is the sum of all four, and lot cost is the unit cost times the lot size. #### Reading the lot size effect **Body:** Setup cost per piece falls in proportion to one over the lot size, so the steepest savings occur at small lots. Beyond a certain quantity, extra volume barely moves the unit cost. If your costing lot is unrealistic compared with actual production lots, the standard will understate real cost and create unfavourable variances every period. **Bullets:** - Costing lot far above actual lot means chronic variances - Check overhead basis matches the cost accounting policy - Update rates when machine or labor costs change #### Common mistakes **Body:** Dropping scrap from the rollup is the most common error. Applying overhead to material when policy applies it to conversion only is a close second. Teams also forget that rate changes ripple through every item using the work centre, so a small rate edit can move hundreds of standards at once. Always preview impact before committing a new costing run. **Cta:** If you need variances between standard and actual cost traced item by item in M3, Netray can build a read-only analysis on your data. **Faq:** #### Why does my system cost differ from this result? **Answer:** Differences usually come from rate sources, rounding, overhead bases, multi-level components or a different costing lot. Compare each component line by line to find which assumption differs. #### Should scrap be on material only? **Answer:** It depends on policy. Many companies apply scrap to material, and some also inflate run time. This tool applies it to material only, so adjust the run time yourself if your policy differs. #### What is a sensible overhead rate? **Answer:** It is set by your cost accounting, usually as total indirect cost divided by the chosen base, such as direct labor or machine hours. Take it from finance rather than estimating. #### Can I use this for quoting? **Answer:** As a first pass, yes. A quote also needs margin, tooling, packaging, freight and risk, so treat the unit cost as a floor rather than a price. ## Search terms m3 product costing, standard cost rollup calculator, unit cost calculator manufacturing, setup cost per unit lot size, overhead absorption calculator, infor m3 costing, bom cost rollup --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json