Activity-Based Costing Calculator
Allocate multiple overhead cost pools to one product using cost-driver quantities, with optional direct costs.
Enter one row per cost pool, up to 20. Each pool driver total must be positive; use consistent units within each pool. Allocation is the sum of pool rate × product driver quantity, plus optional direct costs.
Manual inputs stay in this browser. No external data is fetched.
Sources: OpenStax, Principles of Accounting, Managerial Accounting: Activity-Based Costing
Result
A QUICK WALKTHROUGH
How to use this tool
- Enter one row per cost pool, up to 20. Each pool driver total must be positive; use consistent units within each pool. Allocation is the sum of pool rate × product driver quantity, plus optional direct costs.
- Allocated cost = Σ(pool cost ÷ total pool driver × product driver quantity) + direct costs.
- Manual inputs stay in this browser. No external data is fetched.
Formula
Allocated cost = Σ(pool cost ÷ total pool driver × product driver quantity) + direct costs.
Assumptions and limits
Enter one row per cost pool, up to 20. Each pool driver total must be positive; use consistent units within each pool. Allocation is the sum of pool rate × product driver quantity, plus optional direct costs.
Sources
OpenStax, Principles of Accounting, Managerial Accounting: Activity-Based Costing
GOOD TO KNOW
Common questions
How is overhead allocated?
For each pool, divide pool cost by its total driver quantity, multiply by the product’s driver quantity, then sum the pool allocations.
Can I include direct costs?
Yes. Enter optional direct costs to add them to the allocated overhead total.
How many cost pools can I enter?
Up to 20 rows. Each pool’s total driver quantity must be positive and use consistent units within that pool.