Question

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 ?​

Answer 1

$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