Welding and fabrication
Fabrication rework scrap cost
Price actual rejected and reworked production without prescribing tolerances.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
scrap units*unit cost+rework hours*rate+disposal-salvage.
Scrapped units and reworked accepted units are separate. Do not count original cost twice; this does not prescribe acceptance tolerances or repair procedures.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Scrapped units (units): Actual count from job, sales, production or service records for scrapped units. Future counts are explicit assumptions; do not infer demand.
- Accumulated cost per scrapped unit (selected currency): Cost accumulated per rejected unit at the rejection stage, not sales value.
- Rework person-hours (person-hours): ADDITIONAL successful rework person-hours separate from scrapped units.
- Loaded rework hourly cost (selected currency): Matching cost total divided by matching productive/operating hours from invoices, compensation records or logs. Use the field’s exact elapsed/person/machine-hour basis.
- Disposal cost (selected currency): Matching invoice, quote, statement, bookkeeping record or explicit budget amount for disposal cost. Use the stated period and exclude amounts already counted in another field. Zero means intentionally excluded/not incurred, not unknown.
- Salvage credit (selected currency): Owner-supplied expected sale receipt at the stated end date; scenario assumption, not market appraisal.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Total scrap and rework cost is $1,150.00 for the illustrative inputs below.
Example inputs
- Scrapped units: 10 units
- Accumulated cost per scrapped unit: $50.00
- Rework person-hours: 20.00 person-hours
- Loaded rework hourly cost: $30.00
- Disposal cost: $100.00
- Salvage credit: $50.00
- Total scrap and rework cost
- $1,150.00
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Price actual rejected and reworked production without prescribing tolerances.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.