CM Calculation & Factory Overhead Allocation SOP
Master Cost of Making (CM) formulas, cost per minute, BOM pricing, process loss margins, FOB/CIF quotation, and break-even analysis.
Structured A–Z learning path engineered for commercial officers, export managers, merchandisers, and factory directors.
Costing and financial governance protect factory margins against unexpected cost overruns.
Comprehensive financial costing guide for costing managers, factory financial controllers, and commercial directors.
6 Course Modules
Structured A–Z curriculum with 24+ lessons and downloadable SOP resources.
Module 1: Cost Per Minute & CM Formula Mechanics
Calculating Factory Cost Per Minute SOP
Master equations for Total Monthly Factory Operating Expenses, Working Days, Daily Available Operator Minutes, and Cost Per Minute (CPM).
Direct Labor Wage Structure & Piece-Rate vs Hourly Payroll
How garment factories pay sewing operators: hourly wages, piece-rate earnings, overtime, and allowances, with worked comparisons that show exactly when each system costs the factory more and when it earns the operator more.
Factory Overhead Classification: Fixed vs Variable Overheads
Which factory costs stay fixed when output changes and which move with it, how to split a real expense ledger into fixed and variable heads, and why the split changes CPM, quotation, and every volume decision a factory makes.
Deriving CM per Garment & CM per Dozen Formulas
The final step of Module 1: turning SMV and Cost Per Minute into CM per garment and CM per dozen, with the two equivalent conventions, the double-division trap that overquotes by 25 percent, and worked tables for four garment types.