Components Of Factory Overhead
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Factory overhead includes indirect materials, indirect labor, and other indirect costs that support manufacturing but cannot be traced directly to a product. Indirect materials include supplies like lubricants and fuel, while indirect labor covers supervision salaries, inspection salaries, and clerical salaries. Other indirect costs comprise rent, insurance, taxes, depreciation, maintenance, utilities, payroll taxes, and small tools.
Components Of Factory Overhead
- 1. Component Of Factory Overhead What things can come under this head Indirect Material + Indirect Labor + Others Indirect Cost = Factory Overhead Indirect Material Factory Supplies Lubricants and fuel Indirect Labor Supervision (factory supervisor salaries) Superintendence (Salary) Inspection team Salary Salaries of factory clerks Defective work salary Experimental Work Other Indirect Cost Rent Insurance Fire Property Tax on factory Building Depreciation of Plant and machinery Maintenance and Repairs (Factory machinery, factory Building) Power (factory) Heat and Light of Factory Employer Payroll Factory Taxes Miscellaneous Factory overhead Small Tools