ECONOMICS

Detailed explanation-1: -Manufacturing overhead (MOH) cost is the sum of all the indirect costs which are incurred while manufacturing a product. It is added to the cost of the final product along with the direct material and direct labor costs.

Detailed explanation-2: -All costs associated with the production process other than direct material costs and direct labor costs are called manufacturing overhead. Terms synonymous with manufacturing overhead include factory overhead, factory burden, and overhead.

Detailed explanation-3: -Manufacturing overhead is all indirect costs incurred during the production process. This overhead is applied to the units produced within a reporting period. Examples of costs that are included in the manufacturing overhead category are as follows: Depreciation on equipment used in the production process.

Detailed explanation-4: -Manufacturing overhead is part of a company’s manufacturing operations, specifically, the costs incurred outside of those related to the cost of direct materials and labor. This is why manufacturing overhead is also called an indirect cost.

Detailed explanation-5: -Manufacturing overhead consists of all manufacturing costs other than direct materials and direct labor. Explanation: Manufacturing overhead is indirect materials, indirect labor, and factory overhead. The costs which are not directly traceable to each product manufactured is called the manufacturing overhead.