Enter the total cost of goods sold, cost of raw materials, and direct labor costs. The calculator will evaluate and display the manufacturing overhead.
- Cost of Goods Manufactured Calculator (COGM)
- Efficiency Ratio Calculator
- Marginal Product of Labor Calculator
Manufacturing Overhead Formula
The following equation is used to calculate the manufacturing overhead of an item.
MO = COGS – CORM – LC
- Where MO is the manufacturing overhead
- COGS is the cost of goods sold
- CORM is the cost of raw material
- LC is the direct labor cost
Manufacturing Overhead Definition
Manufacturing overhead is term used in business to describe the total revenue a manufactured good earns minus it’s raw material cost and direct labor lost. This does not include indirect labor cost or machinery costs.
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