PT. XYZ face a challenge in the form of high production cost, which leads to expensive product results and the inability to meet the market demand, which can cause a significant profit loss. This study aims to evaluate the production cost that can be arranged more efficiently, therefore, reducing the price of production and arranging an effective and efficient production planning to fulfil the market demand. The research method used to evaluate the production cost is the Activity-Based Cost Method. The methods used for production planning are Forecasting, Aggregate Planning and Master Production Scheduling methods. Based on the result of data processing, it is known from Activity-Based Cost calculation that one of the production costs that can be minimized is backorder cost with the final amount of Rp37.201.062. Moreover, the best forecasting method in production planning is the linear regression method. Thus from the proposed Aggregate Planning, it can be derived that the total production cost can be lowered up to Rp120.881.904.