Manufacturing Overhead
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MS: Overhed Pengeluaran · EN: Manufacturing Overhead · ZH: 制造费用
Meaning
Manufacturing overhead is all indirect factory costs that cannot be traced directly to a single unit of output. It includes indirect materials, indirect labour and indirect expenses such as factory rent and depreciation of machinery. This cost is added to prime cost to obtain the cost of production.
Example
Wangi Bread Factory pays factory rent of RM6,000 and machine depreciation of RM2,000. Both are manufacturing overheads and are added to prime cost in the Manufacturing Account.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5