Mattress, Bedding & Foam Product Assembly worked example

Cost Per Mattress at 40% overhead allocation rate: a worked example

What does the result look like when overhead allocation rate reaches 40%? The full calculation is worked below with real intermediate numbers. Use this when building product cost sheets for quoting, comparing cost across mattress models, or identifying the highest-cost components for value engineering.

The inputs for this scenario

  • Material cost per mattress: 85 $ / mattress (unchanged)
  • Direct labor cost per mattress: 12 $ / mattress (unchanged)
  • Overhead allocation rate: 40 % (raised for this scenario; the documented default is 35)
  • Per-unit fixed charges: 3.5 $ / mattress (unchanged)

Working through the calculation

  • Applying the documented formula (Direct cost = material cost + direct labor cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 412 $ for weighted cost, the number this scenario is built around.
  • At this operating point the engine returns 4.84 $ / piece for per piece value.
  • At this operating point the engine returns 408 $ for captured value.
  • At this operating point the engine returns 3.5 $ for fixed adjustment.

How this compares with the baseline

  • Against the tool's baseline example, where overhead allocation rate sits at 35% and the headline result is 361 $, this scenario comes in 14.15% above the baseline at 412 $.
  • A figure at this level is achievable when overhead allocation rate is genuinely sustained, not just peaked for a shift. Overhead allocated as a flat percentage of direct cost can misprice low-labor, high-material SKUs — activity-based costing gives a truer picture for very different product mixes.

Results at a glance

  • Weighted cost: 412 $ (headline result)
  • Per piece value: 4.84 $ / piece
  • Captured value: 408 $
  • Fixed adjustment: 3.5 $

Run it with your numbers

  • Every input above is editable in the live Cost Per Mattress calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.