Question

List several examples of factory overhead.

Short answer

Factory rent, factory utilities, depreciation, etc.

Step-by-step solution

Meaning of Factory Overhead

Factory overhead is thecost of running a company that cannot be directly related to a particular product or service.In most cases, overhead is associated with factories or production.

Example of factory overhead

Indirect materials, indirect labor, amortization of patents, amortization of factory equipment and plant, cost of small tools used, utility costs for the factory, insurance for the factory and equipment, property taxes for the plant and equipment, property taxes for materials and goods in process inventories, and repairs and maintenance for the factory building and equipment are a few examples of factory overhead costs. In general, overhead includes any expenses incurred while producing a good not categorized as direct materials or direct labor.