COST ACCOUNTING
MANUFACTURING OVERHEAD
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The total number of units produced
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The number of hours it take to produce a product
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The wage of the person producing the product
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The cost of the material used to produce the product
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Detailed explanation-1: -In order to know the manufacturing overhead cost to make one unit, divide the total manufacturing overhead by the number of units produced.
Detailed explanation-2: -Manufacturing Overhead Formula First, you have to identify the manufacturing expenses in your business. Once you do, add them all up or multiply the overhead cost per unit by the number of units you manufacture. To get a percentage, divide by your monthly sales and multiply that number by 100.
Detailed explanation-3: -The predetermined overhead rate is set at the beginning of the year and is calculated as the estimated (budgeted) overhead costs for the year divided by the estimated (budgeted) level of activity for the year. This activity base is often direct labor hours, direct labor costs, or machine hours.
Detailed explanation-4: -Manufacturing overhead is the indirect costs associated with manufacturing a product. These costs can include rent, utilities, insurance, property taxes, depreciation, and repairs. They also include indirect labor expenses such as employee benefits and payroll taxes.