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are sales salaries included in total overhead costs for a manufacturing company?
Solution
Overhead costs can be manufacturing overheads and nonmanufacturing overheads
Some of the costs that would typically be included in nonmanufacturing costs include:
* Salaries and fringe benefits of selling, general and administrative personnel. This would
include the company president, vice presidents, managers, and other employees in the
manufacturing functions of the company.
* Rent, property taxes, utilities for the space used by the nonmanufacturing functions of
the company.
* Insurance for areas outside of the factory.
* Interest on business loans.
* Marketing and advertising.
* Depreciation and maintenance of equipment and buildings OUTSIDE of manufacturing.
* Supplies for the offices.

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are sales salaries included in total overhead costs for a manufacturin.docx

  • 1. are sales salaries included in total overhead costs for a manufacturing company? Solution Overhead costs can be manufacturing overheads and nonmanufacturing overheads Some of the costs that would typically be included in nonmanufacturing costs include: * Salaries and fringe benefits of selling, general and administrative personnel. This would include the company president, vice presidents, managers, and other employees in the manufacturing functions of the company. * Rent, property taxes, utilities for the space used by the nonmanufacturing functions of the company. * Insurance for areas outside of the factory. * Interest on business loans. * Marketing and advertising. * Depreciation and maintenance of equipment and buildings OUTSIDE of manufacturing. * Supplies for the offices.