Manufacturing overhead is applied to products on the basis of a predetermined overhead rate. This rate is calculated as the total estimated overhead for the period divided by the estimated activity ...

As a former corporate controller and senior vice president of operations, I have experienced both sides of allocated overhead. I have learned manufacturing executives have more control over costs ...

Work-in-progress inventory is the amount of money spent on the units of products in various stages of completion but are still sitting on the production floor. Some raw materials, direct labor and ...