Explanation of the Manufacturing Overhead Budget

Explanation of the Manufacturing Overhead Budget contains all the costs and other than raw materials and labor, that will be incurred by a manufacturing company or department during a fiscal year. These ongoing costs are a valid part of manufacturing expenses you incur and should be calculated as part of your manufacturing budget.

Manufacturing Overhead Budget

Manufacturing Overhead Budget: Learning Objective of the article: Define and explain manufacturing overhead budget. Prepare a manufacturing overhead budget. The manufacturing overhead budget provides a schedule for all costs of production other than direct materials and direct labor. Example of a Manufacturing Overhead Budget: