Four unavoidable examples of manufacturing overhead

1. Four unavoidable
examples of manufacturing
overhead

2. What are overheads?
 Manufacturing Overhead is the
indirect factory related cost
incurred by a manufacturer at
the time of production.
Manufacturing of products
comes with a lot of other
unavoidable expenses that
might not have been calculated
before.

3. What to do with
Manufacturing
overhead ?
Manufacturing overheads are often
disposed off to adjust them in the
statement. However, before trying to
understand how to dispose off the
overheads, you must be able to identify
them.

4. Find the list of some most common
examples of manufacturing overhead
costs in this presentation.

5. Indirect Labor
 Indirect labor refers to any labor that does not directly
relate to the manufacture of a product but is necessary
to the manufacturing process.
 For example:
i. wages paid to workers employed to inspect
finished products
ii. wages paid to manufacturing supervisors
iii. janitorial staff at a manufacturing facility

6. Utilities
 Utilities are not categorized under direct labor or direct
materials. That is he reason it finds its place in
manufacturing overhead costs.
 The most indispensable examples are: water, sewer,
electricity, and phone and internet service.
 Moreover, purchasing and maintaining computer
systems in the process of production is also classified as
a part of manufacturing overhead.

7. Supplies
 Supplies during the production which have not been
counted as directly related to production are classified
as overhead.
 Fuel to power forklifts, or grease needed to keep
machines working properly are common examples of
overhead supplies.
 Moreover, the cost of any replacement parts needed to
repair or maintain manufacturing equipment gets
included in manufacturing overhead cost.

8. The list of manufacturing overhead costs in inexhaustible as many
expenses during manufacturing process are unanticipated. Some
very common manufaturing overhead costs include the following
items:
 Things to maintain a safe working environment.
 Property Insurance
 Warehouse or manufacturing equipment
 Taxes related to the manufacturing process.

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