Final answer:
Total manufacturing costs include 1) direct materials, 2) direct manufacturing labor, and 3) manufacturing overhead applied. These encompass all the production costs and are essential for profitability and strategic decision-making in manufacturing businesses.
Step-by-step explanation:
Total manufacturing costs typically include all expenses related to the production of goods. These costs are typically categorized into three main components: direct materials, direct manufacturing labor, and manufacturing overhead applied. Direct materials are the raw materials that are used in the production of the final product. Direct manufacturing labor represents the wages and salaries paid to those employees who are directly involved in the manufacturing process. Finally, manufacturing overhead applied includes all other costs associated with the production process that are not direct materials or direct labor, such as utilities, depreciation, and rent for the manufacturing facilities.
Therefore, when considering the total manufacturing costs, it's important to account for all these aspects. In factors of production, which include labor, land, and capital, these costs are critical for profitability and decision-making in business operations, including the industrial site location analysis. Given the varying costs of technology and the balance between labor and capital, firms must analyze these to determine the most efficient and cost-effective means of production.