What is manufacturing overhead?

[kuldeep]

I’m currently going through cost accounting and came across the term manufacturing overhead. From what I understand, it includes all the indirect costs that go into producing a product but can’t be traced directly to a single unit.

 

[Jarwish]

Manufacturing overhead refers to all indirect production costs that are not directly traceable to a specific product. This includes utilities, factory rent, equipment depreciation, and salaries of support staff, essential for production but not part of direct materials or direct labor.

 

[nikhilrajoria]

It contains the indirect production costs such as factory utilities, equipment depreciation, and supervisor salaries (not direct labor or materials).