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    GreenApple905's Avatar
    GreenApple905 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 8, 2009, 12:56 AM
    Manufacturing overhead cost!
    My HW required to calculate over/under allocated overhead, so I have to calculate actual mfg. overhead cost at first, but I am confusing sth about manufacturing overhead cost. The exercise given:

    Direct labor cost
    Indirect labor
    Indirect material
    Factory utilities
    Selling & Administrative expense
    Marketing promotion
    Plant rent
    Property tax on plant building
    Insurance premium for plant equipment
    Customer service cost
    RM purchases
    Sales revenue


    I think the Actual mfg. overhead cost = Indirect labor + indirect material + factory utilities + plant rent + property tax + insurance premium for plant.
    However, I am confusing whether the factory utilities, insurance premium for plant are included. Help me .

    p/s: I don't know what happened with my previous post :( asking about calculate predetermined overhead rate, disappeared :confused:
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
    		  
    #2

    Jul 8, 2009, 05:12 AM

    You are on the right track. Factory utilities and insurance will be included in actual overhead costs. As for the previous post, please post again.
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