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29-03-2019
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with estimated overhead of 250,000. toy produces Dinosaurs (400 setups) and Pirate ships (600 setups). How much of the machine setup cost pool should be assigned to dinosaurs ?

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29-03-2019

$100,000

Determine the percentage of total setups that dinosaurs represent and then take that percentage of total overhead costs.

Dinos/ (Dinos + Pirates)

400 / (400+600) = 400/1000 = .4 or 40%

.4*250,000 = $100,000

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