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 Fast moving consumer company (FMCG) Unilever. Unilever is a manufacturing company which manufactures various products in following categories:

· Home Care

· Beauty and Personal Care

· Foods

· Refreshments

Some of the brand names are

· Lipton

· Radox

· Omo

· Lux

· Magnum

· Sunsilk

· Knorr

· Cornetto

· Wall’s

· Comfort

· Dove

· Surf

· Vaseline

The typical direct materials used by Unilever in its manufacturing activities are (sample of raw material names is given)

· Foods – for example in soups- tomato paste, corn extracts, flavours, etc, milk based ingredients and flavours in ice creams products

· In case of Home care products – various chemicals and ingredients like Soda ash, LABSA and enzymes ( cleaning agents) , sodium carbonate, sodium aluminosilicate, fabric whitener, sodium perborate, sodium silicate, Alcohol ethoxylate etc

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

Some of the manufacturing overheads costs incurred by the company

· Indirect material

· Indirect labor

· Factory supplies expense

· Factory management salaries

· Depreciation on factory plant

· Depreciation on factory buildings and equipment

· Factory supervision charges

· Factory taxes

· Factory rent and rates

· Factory repairs and maintenance

· Factory utilities for electricity and water

· Factory insurance expenses