Manufacturing Overhead

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Manufacturing overhead, abbreviated as MOH, is all indirect costs incured during the production process that can not be traced to the object cost.

 

Manufacturing Overhead Formula

\(\large{ MOH = COGS - CORM  - DL  }\)  

Where:

\(\large{ MOH }\) = manufacturing overhead

\(\large{ COGS }\) = cost of goods sold

\(\large{ CORM }\) = cost of raw materials

\(\large{ DL }\) = direct labor cost

 

Tags: Equations for Manufacturing