Question

Research a manufacturing company of your choosing and determine the following:

• What are the typical products manufactured by your selected company, include the brand names
• What are the typical direct materials used by the selected company
• What are the some manufacturing overhead costs that would be incurred by the company

Answer 1

The manufacturing company researched is Global FMCG Company Unilever. Unilever manufactures various products in following categories:

· Home Care

· Personal Care

· Foods and Refreshments

Some of the brand names are

· Knorr

· Cornetto

· Wall’s

· Comfort

· Dove

· Surf

· Vaseline

The typical direct materials used by Unilever in its manufacturing activities are ( note: list is indicative)

· Various Food ingredients – for example in soups- tomato paste, corn extracts, flavours, etc, milk based ingredients in ice creams,

· In case of Home care products – various chemicals and ingredients like Soda ash, HA 20, speckles, LABSA and enzymes ( cleaning agents) , sodium carbonate etc

· In case of Personal care products – chemicals- sodium chloride, Glycerine, perfumes, etc

Some of the manufacturing overheads costs incurred by the company

· Factory management salaries

· Depreciation on plant

· Depreciation on factory buildings and equipment

· Factory supervision charges

· Factory annual taxes

· Factory rent and rates

· Factory repairs and maintenance

· Factory utilities

· Factory insurance expenses

· Factory supplies expense