Under Generally Accepted Accounting Principles, or GAAP, manufacturing overhead must be allocated to each item produced. Manufacturing overhead is the expenses associated with the manufacture of ...

Common in the manufacturing industry, the predetermined overhead rate for machine hours is a production overhead cost. The rate is used to identify the expected costs of machine production, which ...

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 ...