what is manfacturing overhead cost

Answer 1

Manufacturing overhead cost, also known as indirect cost, is the cost of operating a manufacturing process that cannot be attributed directly to a specific product. It includes expenses such as rent, utilities, insurance, depreciation, maintenance and repair costs for equipment, salaries of support staff, and any other costs associated with the manufacturing facility that are not directly related to the production of the units. These costs are necessary for the manufacturing process to operate, but they cannot be directly traced to a specific product or unit. The manufacturing overhead cost is usually allocated to units of production based on a predetermined overhead rate or formula.