About this template
Production Cost & Machine Hour Rate 2026/2027 is a complete, editable calculation package for manufacturing companies, CNC workshops, and small production businesses. Calculate the imputed machine hour rate, material consumption, direct labor time, setup time, external processing costs, and overhead markups. Obtain a basis for full cost calculation per item, target price, and quote follow-up – with an Excel tool and document templates for review and pricing decisions.
Price 79 SEK – one-time purchase. The package includes Swedish Word and PDF templates, a separate Swedish user guide, a supplementary English worksheet, and an Excel file with six interconnected tabs. No subscription or connection required.
Version 1.0, intended for 2026/2027. The Excel calculations have been functionally tested for accurate costs, margins, and warnings for prices below cost. Accounting and tax limitations have been compared with guidance from the Swedish Tax Agency and the Accounting Standards Board. No external certification or company-specific accounting review is included.
What is included in the calculation package
| Document | Content | Format |
|---|---|---|
| Production Cost – Calculation Routine | Roles, calculation policy, machine-related costs, productive hours, price calculation, control points, and limitations. | Word + PDF |
| Item Costing & Pricing Decision | Professional form for item data, cost basis, reasonableness check, justification, approval, and follow-up. | Word + PDF |
| Detailed User Guide | Step-by-step instructions for all Excel sheets, cost examples, common error sources, and accounting source information. | Word + PDF |
| Production Costing – Working Sheet | Supplementary English working document for staff in Swedish operations; not a complete translation of the main templates. | Word + PDF |
| Production Cost & Machine Hour Rate | Excel tool with machine register, item register, item costing, quote follow-up, and overview. | Excel XLSX |
Total of nine files in ZIP: 4 DOCX, 4 searchable A4-PDFs, and 1 XLSX. The primary language is Swedish.
For which companies is the production cost calculation suitable?
For CNC workshops and contract manufacturers calculating processing costs per part and machine hour, production managers in need of a consistent calculation policy, cost and quote managers comparing quoted prices against modeled costs, and small manufacturing companies wanting structure without a comprehensive ERP system.
Excel – six interconnected worksheets
| Worksheet | Function |
|---|---|
| Overview | Displays registered machines and items, completed costings, quotes below cost, as well as summarized quote values, modeled costs, and profit margins. |
| Machines | 60 rows for machine ID, imputed capital cost, maintenance, energy, premises, other annual costs, and productive hours. Automatic hourly rate. |
| Items | 80 rows with material/pc, waste %, direct labor/hr, cycle time, setup time, batch size, external costs, overhead %, machine ID, target margin, and planned price. |
| Item Costing | 80 interconnected calculation rows with material, labor, machine, setup cost, markups, full cost/pc, target price, margin, and data status. |
| Quote Follow-up | 80 prepared quote rows with item ID, quantity, quoted price, estimated order cost, and margin, plus warning for price below full cost. |
| Instructions | Calculation definitions, registration order, limitations, review, and relevant authority sources. |
The formulas calculate once the required values are entered. Empty or incomplete items should not be used as a basis for decision-making. Status is shown for, among other things, missing machine ID, incomplete costing, missing planned price, and price below full cost. Excel never makes a business decision automatically.
Calculation example – how machine hour rate and price work
Assume a machine has 450,000 SEK in budgeted annual costs and is used for 1,500 productive hours. The machine hour rate then becomes 300 SEK/hour.
An item has the following costing conditions: material 120 SEK/pc, waste 5%, labor time 12 minutes/pc at 240 SEK/hour, machine time 12 minutes/pc, setup time 30 minutes per batch of 50 pcs, external cost 10 SEK/pc, and overhead markup 15% of the defined cost base.
| Cost item | Calculated SEK/pc |
|---|---|
| Material including waste | 126.00 |
| Direct labor time | 48.00 |
| Machine time | 60.00 | Setup time distributed per item | 5.40 |
| External processing | 10.00 |
| Overhead markup 15% | 37.41 |
| Full cost/pc | 286.81 |
| Target price at 20% target margin | 358.51 |
The model calculates target price as cost / (1 − desired target margin), not as a simple 20% markup. All amounts should be stated in SEK excluding VAT and based on documented assumptions.
How to use the package – step by step
- Determine calculation period. Use SEK excluding VAT throughout and document who is responsible for the cost basis.
- Register machines. State annual imputed machine costs and realistic productive hours. Avoid double-counting premises, energy, and personnel.
- Register items. State cost per material/pc, waste, labor cost/hr, cycle time and setup time in minutes, normal batch size, and external processing.
- Select the correct machine. Use the exact same unique machine ID as in the machine register so that the machine hour rate is retrieved correctly.
- Determine markups and target margin. Distinguish overhead distribution from margin and verify every percentage.
- Review item costing. Check full cost, target price, and any status warnings.
- Test quote price. Register quote volume, item ID, and quoted price in the Quote follow-up. Compare order value with modeled cost.
- Make and document decisions. Use the pricing decision form, save assumptions, and follow up against actual production costs.
Common mistakes in cost accounting for production
- Dividing annual costs by calendar or scheduled hours instead of productive hours.
- Using wages excluding relevant cost components and thereby underestimating the true labor cost.
- Double-counting capital, energy, premises, maintenance, or overheads in several items.
- Forgetting setup time or using a batch size that does not correspond to normal production.
- Mixing SEK with EUR or other currencies in the same calculation.
- Viewing a suggested price as a market-ready, contractually or legally correct quoted price without separate assessment.
- Copying internal machine depreciation directly into the annual accounts.
What applies to depreciation and accounting 2026/2027?
There is no general Swedish legal requirement to use a specific machine hour rate calculation. The Accounting Standards Board (Bokföringsnämnden) provides rules and guidance on how machines and other assets should be valued and depreciated in the company's accounts depending on the applicable framework and fiscal year. Amendments to K2 and K3 have been decided, with different application dates that must be verified for the company in question. The Swedish Tax Agency (Skatteverket) describes, among other things, the conditions for tax-related depreciation.
This product's field for imputed capital cost, however, is an internal planning assumption for prices. It does not establish the correct depreciation method, tax-related value, inventory accounting, VAT, or taxable profit. Accounting must be assessed separately.
Frequently asked questions
How do I calculate machine hour rate?
Sum up relevant budgeted annual machine costs and divide by realistic productive machine hours per year. Excel performs the calculation once the information is registered.
Can I calculate the cost for each manufactured item?
Yes. You can enter material, labor, processing time, setup time, batch size, external costs, and overhead markups for up to 80 prepared item rows.
Does Excel calculate cost and target price?
Yes, as internally modeled full cost and a target price at a specified target margin. It is not a tax-related cost calculation or an automatically approved customer quote.
What is the difference between markup and margin?
Markup is calculated in relation to cost. Margin is normally calculated as a share of the price. Therefore, a 20% target margin results in a different target price than a 20% markup.
Can several different processing operations be calculated separately?
The workbook is limited to one selected machine/main operation per item row. For multiple operations, the separate steps need to be calculated and consolidated through your own adjustments or a more advanced system.
Is this a ready-made accounting or tax return template?
No. It is a pricing and production calculation tool, not a general ledger system, tax report, inventory valuation, or annual closing template.
Is an English version included?
Yes, a supplementary English worksheet is included. The main documents and the detailed user guide are in Swedish.
Format, digital delivery, and price
79 SEK, digital one-time purchase. ZIP with four editable DOCX, four searchable A4-PDFs, and one Excel workbook (XLSX). No physical shipping. Automated delivery after purchase requires that the ZIP file be linked to the correct product variant in Digital Products.
Official sources
- Accounting Standards Board – Decided accounting rules
- Accounting Standards Board – Changes in K2/K3 and annual accounts
- Swedish Tax Agency – Tax-related depreciation
Related templates
Complement with Production Planning & Capacity Calculation for order and load planning, OEE & TAK – Machine Efficiency for actual operational follow-up, and Quote Template & Quote Calculation for a separate quoting process.
Disclaimer: General calculation and document templates. Calculations depend entirely on correctly entered input and do not replace market assessment, contracts, bookkeeping, audit review, or individual accounting or tax advice.
