Manufacturing overhead includes costs not directly attributed to the production of a product. Some examples of overhead costs are manufacturing support staff, machinery and their maintenance, insurance, taxes, and supplies to name a few. Accurately tracking this information is vital for businesses. Generally accepted accounting principles (GAAP) dictate that manufacturing overhead must be included in the cost of Work in Process inventory (WIP) and Finished Goods inventory, therefore an accurate calculation is essential. Tracking is also important for budgeting and measuring purposes so that management may look for areas of inefficiency or waste. The Manufacturing Budget Template is a perfect tool for this process.
How to Use the Manufacturing Budget Template
The Manufacturing Budget Template is a simple and effective way for you to track all of your overhead expenses on a quarterly basis. The template provides flexibility and is fully customizable to your business. It boasts a winning combination of a simple interface with good basic functionality that users love.
To begin, download the free Manufacturing Budget Template right here at our website. Open the template and perform any customizations that are necessary. You can update your company name and add, delete or change overhead items that are specific to your company. Save the file when you are finished.
Next, in columns D-G you may begin filling in your costs associated with each of the categories listed. As you add data, totals will appear in other cells. The totals in column H are the annual totals for each overhead category. The totals in row 21 represent the total manufacturing overhead for each quarter.
When completed, you will have a final overview of manufacturing overhead expenses annualized, including a percentage of total calculated for each category. This data is invaluable for business accounting and other planning purposes.
Tips & Tricks When Using the Manufacturing Budget Template
- Cell B6 contains a hidden comment with information about the Manufacturing Budget Template. Review this before you begin.
- Columns H & I and Row 21 all contain formulas. Never input data where there is a formula! If you do this by accident, click Undo.
Download: Manufacturing Budget Template
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