Manufacturing Overhead: Definition, Formula & Examples Video


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Above The Brim is a company that manufactures straw sun hats. Last year they produced 10,000 hats and had a manufacturing overhead of $31,000. What was their manufacturing overhead per unit?

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1. Tipsy Tops is a manufacturing company that produces bar stools. It costs Tipsy Tops $2 in materials and $8 in labor to produce a single bar stool. In addition to those costs Tipsy Tops also spent $250,000 in manufacturing overhead last year in order to manufacture 100,000 stools. What does it cost them to produce a single stool?

2. Which of the following would you need to know to determine the Manufacturing Overhead Per Unit?

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About This Quiz & Worksheet

This quiz/worksheet combo will test your knowledge of manufacturing overhead and how it affects the manufacturing of a product.

Quiz & Worksheet Goals

The following topics are assessed in the quiz:

  • How to determine the manufacturing overhead per unit
  • Calculating the total manufacturing overhead
  • The importance of calculating manufacturing overhead per unit

Skills Practiced

  • Information recall - access the knowledge you've gained regarding how to determine the manufacturing overhead per unit
  • Knowledge application use your knowledge to answer questions about calculating the total manufacturing overhead
  • Interpreting information - verify that you can read information regarding the importance of calculating manufacturing overhead per unit and interpret it correctly.

Additional Learning

Review the lesson called Manufacturing Overhead: Definition, Formula & Example for more information on this important topic. Areas this content will focus on are:

  • Accurately determining production costs
  • The definition of manufacturing overhead
  • Determining manufacturing overhead