Collapse of earth into underground mines, or subsidence, is a serious problem. In room-and-pillar and long-wall mines, columns of coal and other structures are used to support the ground above. Later in the mining process, they are often taken out. The mines are left to collapse.
We view overhead as two types of costs and define them as follows: Manufacturing overhead (also referred to as factory overhead, factory burden, and manufacturing support costs) refers to indirect factory-related costs that are incurred when a product is manufactured.
All of those costs must be considered when determining manufacturing overhead. Calculating Manufacturing Overhead Cost Per Unit. It is important to determine manufacturing overhead cost per unit produced so that you can profitably price your products. Here is the formula to determine manufacturing overhead cost per unit: Manufacturing Overhead Per Unit = Total Manufacturing Overhead / Total Units Produced Ã