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This video discusses Manufacturing Overhead.
There are 3 types of manufacturing costs: Direct Materials, Direct Labor, and Manufacturing Overhead. Manufacturing Overhead is any type of manufacturing cost that is NOT included in Direct Materials and is NOT included in Direct Labor.
Thus, examples of Manufacturing Overhead are indirect materials (e.g., some glue used to build a desk), indirect labor (the salary of a security guard at a factory), depreciation expense for the factory building or factory equipment, insurance on the factory, utilities for the factory, etc. What each of these costs have in common is that they are NOT directly traceable to the final product.
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