The manufacturing overhead account's credit side represents manufacturing overhead applied to production, and the debit side represents manufacturing expenses paid.
The overall cost associated with running all production facilities for a manufacturing enterprise that cannot be linked directly to a product is known as factory overhead, also known as manufacturing overhead, work overhead, or factory burden in American English. Typically, indirect costs and indirect labor are impacted.
You must total up all indirect costs associated with the manufacturing of a product to determine manufacturing overhead. Depreciation costs, manufacturing supplies, electricity, insurance, machine maintenance, indirect materials and labor, and other costs are included in this.
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