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Manufacturing Overhead
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This video discusses Manufacturing Overhead.
There are 3 types of manufacturing costs: Direct Materials, Direct Labor, and Manufacturing Overhead. Manufacturing Overhead is any type of manufacturing cost that is NOT included in Direct Materials and is NOT included in Direct Labor.
Thus, examples of Manufacturing Overhead are indirect materials (e.g., some glue used to build a desk), indirect labor (the salary of a security guard at a factory), depreciation expense for the factory building or factory equipment, insurance on the factory, utilities for the factory, etc. What each of these costs have in common is that they are NOT directly traceable to the final product.
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Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD.
Edspira’s mission is to make a high-quality business education accessible to all people.
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SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS & OTHER FREE GUIDES
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MICHAEL’S STORY
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LISTEN TO THE SCHEME PODCAST
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CONNECT WITH MICHAEL
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HIRE MCLAUGHLIN CPA
There are 3 types of manufacturing costs: Direct Materials, Direct Labor, and Manufacturing Overhead. Manufacturing Overhead is any type of manufacturing cost that is NOT included in Direct Materials and is NOT included in Direct Labor.
Thus, examples of Manufacturing Overhead are indirect materials (e.g., some glue used to build a desk), indirect labor (the salary of a security guard at a factory), depreciation expense for the factory building or factory equipment, insurance on the factory, utilities for the factory, etc. What each of these costs have in common is that they are NOT directly traceable to the final product.
—
Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD.
Edspira’s mission is to make a high-quality business education accessible to all people.
—
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS & OTHER FREE GUIDES
—
MICHAEL’S STORY
—
LISTEN TO THE SCHEME PODCAST
—
CONNECT WITH EDSPIRA
—
CONNECT WITH MICHAEL
—
HIRE MCLAUGHLIN CPA
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