Indirect materials
Indirect materials are production materials—glue, lubricants, cleaning supplies—that cannot be traced economically to one unit, so they are charged to manufacturing overhead rather than direct materials.
See it move
A furniture workshop's April overhead stacks €260 of glue and machine lubricant, €1,140 of indirect labour and €600 of factory rent into €2,000 of manufacturing overhead, none of it traceable to one specific piece of furniture. The €12,400 of oak board, by contrast, is tracked to each item made, so it stays in direct materials rather than overhead.
Check yourself
A furniture workshop's cost records for March show: direct materials (oak board) €5,000, indirect materials (glue and machine lubricant) €150, direct labour €3,000, indirect labour €800, and factory rent €400. What is total manufacturing overhead for March?