Manufacturing Overhead Cost Calculation :
Particulars | Amount |
Oil for manufacturing equipment | $115 |
Plant supervisor's salary | $4,200 |
Plant janitor's salary | $1,200 |
Plant depreciation expense | $10,000 |
Glue for picture frames | $200 |
Total Manufacturing Overhead ( Total of Above Items) | $15715 |
Manufacturing Overheads are the Manufacturing costs which are indirect and can't be directly assign to a units of product.
Item Wise Deails are -
Manufacturing Overhead Costs Items
Oil for manufacturing equipment, Glue for picture frames are indirect Material, used in very small quantity and can't be directly allocate to unit of product.
Plant supervisor's salary, Plant janitor's salary, Plant depreciation expense are the costs that can't be directly assign to unit of product
Non-Manufacturing Overhead Costs Items
Wood For Frames - Direct Material
Company President Salary - Selling And Administrative Cost
Interest Expense - Non Manufacturing Expenses
Depreciation Expense On Company Car used by Sales Force - Selling And Administrative Expenses
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