Four unavoidable examples of

manufacturing overhead

What are overheads?

Manufacturing Overhead is the indirect factory related cost incurred by a manufacturer at the time of production. Manufacturing of products comes with a lot of other unavoidable expenses that might not have been calculated before.

What to do with Manufacturing

overhead ?

Manufacturing overheads are often disposed off to adjust them in the statement. However, before trying to understand how to dispose off the overheads, you must be able to identify them.

Find the list of some most common

examples of manufacturing overhead

costs in this presentation.

Indirect Labor

Indirect labor refers to any labor that does not directly relate to the manufacture of a product but is necessary to the manufacturing process.

For example: i. wages paid to workers employed to inspect

finished productsii. wages paid to manufacturing supervisorsiii. janitorial staff at a manufacturing facility

Utilities

Utilities are not categorized under direct labor or direct materials. That is he reason it finds its place in manufacturing overhead costs.

The most indispensable examples are: water, sewer, electricity, and phone and internet service.

Moreover, purchasing and maintaining computer systems in the process of production is also classified as a part of manufacturing overhead.

Supplies

Supplies during the production which have not been counted as directly related to production are classified as overhead.

Fuel to power forklifts, or grease needed to keep machines working properly are common examples of overhead supplies.

Moreover, the cost of any replacement parts needed to repair or maintain manufacturing equipment gets included in manufacturing overhead cost.

The list of manufacturing overhead costs in inexhaustible as many expenses during manufacturing process are unanticipated. Some very common manufaturing overhead costs include the following items: Things to maintain a safe working environment. Property Insurance Warehouse or manufacturing equipment Taxes related to the manufacturing process.

Still got

doubts?

Transtutors provides a 24*7 online platform where you can ask questions and get almost instant reply and finest answers. With a team of experienced expert tutors from different corners of the world, we promise to deliver answers that can fetch you top grades. Ask any question on over or under-applied manufacturing overhead or accounting in general and get best answers at a price very nominal only at

Transtutors!

Follow us:

TranstutorsA vision to build a worldwide youth nation

with spectrum of knowledge and diversity of intelligence to share among all...www.transtutors.com