A production overhead absorption rate used uniformly across a factory, often serving as an alternative to calculating a rate for each individual cost centre.
Factory overhead, also known as indirect manufacturing costs or factory burden, includes the expenses associated with manufacturing that cannot be directly traced to a specific product. Examples include factory rent, maintenance wages, and general machinery depreciation.
In manufacturing, an indirect cost refers to expenses that cannot be directly attributed to specific products. Examples include electricity, hazard insurance on the factory building, and real estate taxes.
Indirect manufacturing costs, also referred to as factory overhead, are expenses that cannot be directly tied to a specific product or production process. These costs include maintenance, utilities, and depreciation of manufacturing equipment.
The cost to a manufacturing company of making a product, consisting of direct materials, direct labor, and factory overhead; also called manufacturing expense.
In cost accounting, the situation where an insufficient amount of factory overhead was charged to the products manufactured.
