ABSTRACT

 Organizations while setting the prices ofits products, needs to ensure that prices must cover costs incurred for producing products and profit margins. Overheads costs are indirect factory-related cost which the company incurs, other than the direct costsforthe production offinished products. This study was carried out to determine the effect ofoverhead cost on selling price of consumer products Abia State: study ofNigeria Breweries Pic, Aba, Abia State with specific objectives to establish the effect ofoverhead cost on the price-setting of consumer products, ascertain the effect ofoverhead cost on sales performance ofconsumer products, examine the effect of marketing sales and subsequent services to the output on selling price ofconsumerproducts. 28staffofthe costing department andsales department of Nigeria Breweries Pic were handed structured questionnaire to solicit data on overhead cost apportionment and sales performance ofthe company. The study made use of descriptive statistics and linear regression analysis to analyse the data with the aid ofSPSS 23.0. The result showed that there is positive effect of overhead cost on price-setting of consumer products, there is positive effect of overhead cost on sales performance of consumer products, there is positive effect ofmarketing sales and subsequent services to the output on selling price ofconsumer products. The study concluded that the price ofconsumer product is influenced by overhead costs. The study therefore recommended that overhead costs apportionment should be regarded as very vital in selling price determination. The costing department ofconsumer goods manufacturing companies should ensure that an appropriate method ofoverhead costs apportionment is adopted to do accurate apportionment that would ensure accurate sellingprice determination, so that the overall performance ofthe company could be enhanced. The study also recommended that Nigeria Breweries Pic and other consumer goods manufacturingproducts should maintain the ABC method ofoverhead costs apportionment in order to have accurate calculation of the total costs per unit of their products.