In the financial statements, each product must include the costs of the given below:
Direct labor
Direct material
Manufacturing or factory overhead
The costs that would typically be included in manufacturing overhead are given below:
Material handlers
People, set up the manufacturing equipment to the required specifications.
People, inspect products as they are being produced.
People, perform maintenance on the equipment.
Factory management team.
People, clean the manufacturing area.
People, perform record keeping for the manufacturing processes.