Respuesta :
The total amount of actual manufacturing overhead cost incurred during the year is $480,000
Total amount of actual manufacturing overhead cost incurred = Indirect labor + various manufacturing overhead costs
= 150000 + 330000 = $480,000
What is Manufacturing Overhead?
- The total of all indirect costs incurred during the manufacturing of a product is known as manufacturing overhead (MOH) cost. Along with the expenses of direct materials and direct labour, it is included in the price of the finished product.
- The depreciation of equipment, wages paid to factory workers, and electricity used to operate the equipment are typically included in manufacturing overhead costs.
- A manufacturer's balance sheet, cost of products income statement, and cost of finished goods in inventory should all reflect production overhead in accordance with generally accepted accounting principles (GAAP).
- Because it's challenging to link manufacturing overhead costs to specific products, they're sometimes referred to as indirect costs. Based on a predetermined overhead absorption rate, these costs are added to the final product
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