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Sales salaries are typically included in nonmanufacturing overhead costs for a manufacturing company. Nonmanufacturing overhead costs include salaries and benefits for selling, general and administrative personnel like the company president, managers, and other non-manufacturing employees. They also include expenses like rent, taxes, utilities, insurance, interest, marketing, and depreciation associated with the non-manufacturing functions of the business.

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are sales salaries included in total overhead costs for a manufacturing company?
Solution
Overhead costs can be manufacturing overheads and nonmanufacturing overheads
Some of the costs that would typically be included in nonmanufacturing costs include:
* Salaries and fringe benefits of selling, general and administrative personnel. This would
include the company president, vice presidents, managers, and other employees in the
manufacturing functions of the company.
* Rent, property taxes, utilities for the space used by the nonmanufacturing functions of
the company.
* Insurance for areas outside of the factory.
* Interest on business loans.
* Marketing and advertising.
* Depreciation and maintenance of equipment and buildings OUTSIDE of manufacturing.
* Supplies for the offices.

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