🏭Manufacturing Cost Formulas
Over/Underapplied Overhead
Applied Overhead - Actual Overhead = Over(+) or Under(-) applied
What It Means
Did you apply too much or too little overhead?
Related Formulas
Prime Costs
Direct Materials + Direct Labor = Prime Costs
Conversion Costs
Direct Labor + Manufacturing Overhead = Conversion Costs
Total Manufacturing Costs
Direct Materials + Direct Labor + Manufacturing Overhead = Total Manufacturing Costs
Cost of Goods Manufactured (COGM)
Beginning WIP + Total Manufacturing Costs - Ending WIP = COGM
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