Manufacturing Overhead Budget

This video shows how to prepare a Manufacturing Overhead Budget.  

Manufacturing companies create a Manufacturing Overhead Budget so they know how much manufacturing overhead they will incur and how much the manufacturing overhead is expected to cost.  The company can then divide the total amount budgeted for manufacturing overhead by the company's cost driver (e.g., direct labor hours) to calculate the predetermined overhead rate.  The predetermined overhead rate can then be used to apply manufacturing overhead to jobs.
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