Overhead allocation worksheet
Overhead Allocation Calculator
Use this overhead allocation calculator as a job costing bridge between total shop overhead, machine-hour assumptions, and the final laser cutting quote. Overhead allocation worksheet: choose the allocation method, send it to margin and laser quote calculators, then return to the quote packet.
Result to use in the quote: allocated overhead per job and overhead rate percent for quote review. Keep the allocation basis visible so the same overhead pool is not counted again inside margin markup.
Best for: multi-machine shops allocating rent, utilities, management, and indirect cost before margin review.
Labor-hour allocation
Best when labor drives indirect cost
Distribute overhead by direct labor hours when workforce mix, supervision, and operator time best explain how indirect cost is consumed.
Machine-hour allocation
Best for capital-intensive laser shops
Allocate by machine hours when depreciation, maintenance, utilities, and floor burden follow equipment runtime rather than headcount alone.
Material-value allocation
Best when handling drives overhead
Use material cost as the allocation base when storage, procurement, handling, and inventory burden correlate with material spend on each job.
Allocation Tool: Results depend on method choice. Different methods suit different operations. Review with your accounting standards and cost structure.
Method choice
Choose the overhead allocation method by cost driver
This overhead allocation calculator can allocate by machine hours, labor hours, material cost, floor space, or equal split. Pick the basis that best follows how indirect cost is actually consumed by the job.
Accounting evidence
Source document to collect before quoting
Use the general ledger, rent or lease bill, insurance invoice, utilities, maintenance records, supervisor time, and machine-hour log as the source document to collect before quoting. Avoid burying those costs in a flat markup.
Next quote step
Move allocated overhead into margin review
After allocation, send the result to the laser quote and quotation margin tools so material, time, gas, labor, overhead, and target margin remain visible in the final quote packet.
Input Parameters
Ready to Allocate
Enter overhead and jobs, then calculate allocations
Quote workflow next steps