Factory overhead
Factory overhead, also known as manufacturing overhead or factory burden, refers to the indirect costs incurred in the manufacturing process that cannot be directly attributed to specific units of production.
These costs are necessary for the production process to take place but do not directly contribute to the creation of a product.
Factory overhead includes various expenses such as:
Indirect materials: Materials used in the manufacturing process that are not directly incorporated into the final product, such as lubricants, cleaning agents, or small tools.
Indirect labor: The wages and benefits of employees who are not directly involved in the production of goods but support the manufacturing process, such as supervisors, maintenance staff, or quality control personnel.
Factory utilities: The costs of utilities required to operate the manufacturing facility, including electricity, water, heating, and cooling.
Depreciation: The allocation of the cost of long-term assets, such as machinery and equipment, over their estimated useful lives.
Rent and property taxes: The expenses associated with leasing or owning the manufacturing facility, including rental payments, property taxes, and insurance.
Maintenance and repairs: The costs of maintaining and repairing machinery and equipment to ensure their proper functioning and efficiency.
Factory supplies: The expenses related to consumable items used in the manufacturing process, such as lubricants, solvents, or safety equipment.
Factory insurance: The insurance premiums paid to protect the manufacturing facility, equipment, and inventory against potential risks and damages.
Other miscellaneous costs: Additional expenses that are indirectly related to the manufacturing process, such as factory management salaries, licenses, permits, or regulatory compliance costs.
Wimax company
Factory overhead
Year-2022 Year-2021
Salary, Wages & Allowances xxxx xxxx
Power & Fuel xxxx xxxx
Repairs and Maintenance Machinery xxxx xxxx
Repairs and Maintenance Generator xxxx xxxx
Fooding Allowances xxxx xxxx
Boiler License Fee xxxx xxxx
Factory Fire Insurance xxxx xxxx
Depreciation of factory Building xxxx xxxx
Depreciation of factory Equipment xxxx xxxx