Manufacturing Overhead Calculator

Calculate Manufacturing Overhead





Formula

The formula to calculate Manufacturing Overhead (MO) is:

\[ MO = COGS - CORM - LC \]

Where:

What is Manufacturing Overhead?

Manufacturing overhead refers to the costs associated with producing goods that are not directly tied to raw materials or direct labor. This includes costs such as factory rent, utilities, and other indirect expenses. Manufacturing overhead helps businesses understand the full cost of producing a product, beyond just the raw materials and labor involved.

Example Calculation

Let's consider an example:

Using the formula to calculate Manufacturing Overhead:

\[ MO = 50000 - 20000 - 10000 = 20000 \, \text{\$} \]

This means that the manufacturing overhead is $20,000.