Factory overhead

factory overhead
Also referred to as manufacturing overhead, indirect manufacturing costs, factory burden, and manufacturing support costs. To learn more, see Explanation of Manufacturing Overhead.
» For more clarity on this term: ...

Factory Overhead
Business Dictionary:
Factory Overhead
Home > Library > Business & Finance > Business Dictionary ...

factory overhead
total of all costs of manufacturing except direct materials and direct labor, also called manufacturing overhead, indirect manufacturing expenses, factory expenses, and factory burden.

FACTORY OVERHEAD - the costs of operating a factory which cannot be assigned directly to a specific dep...
FAD (FUNDS AVAILABLE FOR DISTRIBUTION) - Funds from operations less deductions for cash expenditures fo...

Factory overhead
All the costs incurred during the manufacturing process, minus the
costs of direct labor and materials.
annuity factor ...

Factory overhead costs in a manufacturing organization are varied and complex. These costs consist of indirect labor, indirect materials, and other indirect factory support costs.

Factory overhead
Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for certain production or resale activities.

FACTORY OVERHEAD VARIANCES
Variance analysis should also be performed to evaluate spending and utilization for factory overhead. Overhead variances are a bit more challenging to calculate and evaluate.

market, which is the cost of materials, labor and factory overhead, a minimum of 10 percent for general and administrative costs, a minimum eight-percent profit margin, and packing costs.

For a manufacturing company this is materials, labor, and factory overhead. For a retail shop it would be what it pays to buy the goods that it sells to its customers.

Prices paid for materials, labour, and factory overhead in the manufacture of goods are costs. Or 2. an asset. The term cost is often used when referring to the valuation of a good or service acquired.

included in figuring the cost include: direct labor costs (e.g. contributions to annuity plans and pensions) for workers involved in the production process; the cost of raw materials or products, together with freight; storage; and factory overhead.

If the factory superintendent is granted a raise, factory overhead will go up. Most companies find that using a predetermined overhead rate tends to smooth out the cost of overhead charged to jobs.

In the context of dumping investigations, the costs of manufacture, COM, is equal to the sum of the materials, labor and both direct and indirect factory overhead expenses required to produce the merchandise under investigation.

The work in process account also collects the costs of direct and indirect labor and factory overhead. When the goods are finished, their costs are transferred (credited) out of work in process and added (debited) to the finished goods inventory.

See also: Direct labor, Expense, Acquisitions, Mergers, Business plan