How to determine product costing for manufacturing company

Product Cost Determination
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Step 3: Determine the manufacturing overhead cost
Manufacturing overhead cost includes all the indirect costs associated with the production of a product, such as rent, utilities, and depreciation of equipment. To determine the manufacturing overhead cost, you need to identify all the indirect costs associated with production and divide them by the number of units produced.
Manufacturing overhead cost per unit = Total manufacturing overhead cost / Number of units produced

Overheads: Credit Google

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