Controlling your manufacturing expenses starts with identifying your factory overhead costs. These are all the expenses other than the direct materials and direct labor used to produce your ...

Common in the manufacturing industry, the predetermined overhead rate for machine hours is a production overhead cost. The rate is used to identify the expected costs of machine production, which ...

Discover what applied cost means in accounting, how it works with allocation rates, and see an example to understand its role ...

As a former corporate controller and senior vice president of operations, I have experienced both sides of allocated overhead. I have learned manufacturing executives have more control over costs ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Overhead expenses are any costs that aren't directly associated with generating a profit. Although they don't contribute to revenue, they are still important and necessary. Companies use cost ...

There are many costs associated with running a business, but all of those costs don’t fall into the same bucket. One type is overhead costs, which are expenses not tied directly to the production of a ...

Overhead allocation is a source of great disagreement in our industry. Should the allocation be based on job price? On job cost? Per project? Or per field man-hour. We understand the pros and cons of ...