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In Figure 17.4 of an action potential,number 1 indicates the movement of
Markup
The amount added to the cost price of goods to cover overhead and profit, determining the selling price.
Manufacturing Overhead
Manufacturing overhead includes all manufacturing costs other than direct materials and direct labor, such as rent, utilities, and depreciation on manufacturing facilities.
Predetermined Overhead Rate
A rate calculated at the beginning of an accounting period to allocate overhead costs to products or services based on a relevant activity base.
Variable Manufacturing Overhead
Costs that vary with the level of production output and may include items such as utility expenses and raw materials.
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