A production overhead absorption rate used uniformly across a factory, often serving as an alternative to calculating a rate for each individual cost centre.
Manufacturing Overhead, also known as Production Overhead, includes all the indirect costs incurred in the production process that cannot be directly traced to the product or cost unit. These costs cover a wide range of expenses such as depreciation of machinery, factory rent, maintenance expenses, and utilities.
Production overhead, also known as manufacturing overhead, refers to the indirect costs associated with manufacturing a product. These costs are not directly tied to the production process but are necessary expenses for running a manufacturing operation.
