I am getting confused by manufacturing overhead. it includes direct labor, direct materials and manufacturing overhead? Can i use the term "overhead" instead b/c it is confusing me. And now we are learning about fixed manufacturing overhead and variable manufacturing overhead, which is a bit confusing too.. Any , i know what fixed and variable mean, but does this mean we have to break out the manufacturing overhead like we do w direct and variable costs? My explanation sucks. Sorry. Thank you