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What is overhead manufacturing

What is overhead manufacturing

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Manufacturing overhead:

Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured. Along with costs such as direct material and direct labor, the cost of manufacturing overhead must be assigned to each unit produced so that actual cost of product could be ascertained.

Example of indirect factory cost are indirect material, indirect labor, factory rent, factory building depreciation, factory property and taxes etc.

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