Estimation of Apparel Checking Cost:
Apparel Inspection Cost Calculation Method:
Calculate apparel checking or inspection cost and rate by following the given below chart.
Solution:
The below has needed in apparel checking cost calculation:
Apparel checking cost per apparel,
Direct material cost + Direct labor cost + Direct expense cost + Overhead cost
= …………………………………………………………………….....…...........……...... ...… (1)
Total checking production
Total Checking Production Calculation:
Total production = 10000 pcs apparel
Total Checking Production Time Calculation:
Total production time,
= (Total checking production / Production per shift)
= (10000/2000) shift
= 5 shifts
Direct Material Cost Calculation:
Direct material cost = 0
Direct Labor Cost Calculation:
Operator wage,
= (Number of labor × Number of shifts × operator wage per shift)
= 10×5× Rs. 125
= Rs. 6250
Direct Expense Cost Calculation:
Rechecking labor,
= (No. of labors × No. of shifts × operator wage per shift)
= 2×3× Rs. 125
= Rs. 750
Overhead Cost Calculation:
In power cost calculation,
= (Cost × 5 shifts) / (30days × 2 shift in a day) = {(50000 × 5)/60} = Rs. 417
In rent cost calculation,
= (Cost × 5 shifts) / (30days × 2 shift in a day) = {(10000 × 5)/60} = Rs. 834
In other expenses cost calculation,
= (Cost × 5 shifts) / (30days × 2 shift in a day) = {(15000 × 5)/60} = Rs. 1251
In salary cost calculation,
= (Cost × 5 shifts) / (30days × 2 shift in a day) = {(20000 × 5)/60} = Rs. 1667
So,
Total overhead cost stands at,
= Rs. 417 + Rs. 834 + Rs. 1251 + Rs. 1667
= Rs. 4172
Now,
From equation01, we get,
Apparel checking cost per pc,
(Rs. 0 + Rs. 6250 + Rs. 750 + Rs. 4172)
= …………………………………………………..
10000
= Rs. 1.10
After adding 10% profit,
Apparel checking rate stands at
= {1.10/ (110%)}
= Rs. 1.25
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The person who responsible for the apparel checking or inspection cost calculation has to know some key factors of apparel checking cost such as cost of rechecking, transportation, power charges etc. these will definitely help him in apparel checking cost calculation.
Fig: Apparel inspection cost calculation process 
Calculate apparel checking or inspection cost and rate by following the given below chart.
SL No.

Parameters

Quantity
& Cost

01

Order quantity

10000 pcs apparel

02

Checking person
(Inspector)

10

03

Inspector wages

Rs. 125 per shift

04

Production per shift

2000 pcs apparel

05

1 day

2 shift (1 shift=
8hrs)

06

Rechecking

1000 pcs (Person 02,
Time 03 shifts)

07

Power

Rs. 5000 per month

08

Salary

Rs. 20000 per month

09

Rent

Rs. 10000 per month

10

Other expenses

Rs. 15000 per month

11

Profit

10%

Solution:
The below has needed in apparel checking cost calculation:
Apparel checking cost per apparel,
Direct material cost + Direct labor cost + Direct expense cost + Overhead cost
= …………………………………………………………………….....…...........……...... ...… (1)
Total checking production
Total Checking Production Calculation:
Total production = 10000 pcs apparel
Total Checking Production Time Calculation:
Total production time,
= (Total checking production / Production per shift)
= (10000/2000) shift
= 5 shifts
Direct Material Cost Calculation:
Direct material cost = 0
Direct Labor Cost Calculation:
Operator wage,
= (Number of labor × Number of shifts × operator wage per shift)
= 10×5× Rs. 125
= Rs. 6250
Direct Expense Cost Calculation:
Rechecking labor,
= (No. of labors × No. of shifts × operator wage per shift)
= 2×3× Rs. 125
= Rs. 750
Overhead Cost Calculation:
In power cost calculation,
= (Cost × 5 shifts) / (30days × 2 shift in a day) = {(50000 × 5)/60} = Rs. 417
In rent cost calculation,
= (Cost × 5 shifts) / (30days × 2 shift in a day) = {(10000 × 5)/60} = Rs. 834
In other expenses cost calculation,
= (Cost × 5 shifts) / (30days × 2 shift in a day) = {(15000 × 5)/60} = Rs. 1251
In salary cost calculation,
= (Cost × 5 shifts) / (30days × 2 shift in a day) = {(20000 × 5)/60} = Rs. 1667
So,
Total overhead cost stands at,
= Rs. 417 + Rs. 834 + Rs. 1251 + Rs. 1667
= Rs. 4172
Now,
From equation01, we get,
Apparel checking cost per pc,
(Rs. 0 + Rs. 6250 + Rs. 750 + Rs. 4172)
= …………………………………………………..
10000
= Rs. 1.10
After adding 10% profit,
Apparel checking rate stands at
= {1.10/ (110%)}
= Rs. 1.25
You may follow:
1. How to Calculate Apparel Costing for Brief or Shorts?
2. How to Calculate Apparel Costing for TShirt?
3. 4 Steps of Apparel Costing in Clothing Manufacturing Factory
4. How to Calculate Apparel Costing for Boxer Shorts?
5. How Textile and Apparel Waste Produced in Manufacturing Factory?
6. List of Top 10 Textile Companies in World
7. Top 50 Garments Buying Houses in Bangladesh
8. 7 Factors to Consider After Receiving Apparel Export Order
8. What is Shipment  International Shipping Process Flow Chart
9. 7 Key Principles of Apparel Costing
10. Apparel Cost Calculation Method for Export Order
11. Top 20 Knit Garment Factory in Bangladesh