expenses incurred in the production of goods in the factory are known as factory ove 555908

Expenses incurred in the production of goods in the factory are known as factory overheads. Such costs are concerned with the running of the factory or plant. Factory overheads include indirect material, indirect labour and indirect expenses incurred in the factory. Some examples are as follows:
Indirect materials
a.Grease, oil, lubricants, cotton waste, etc.
b.Small tools, brushes for sweeping, sundry supplies, etc.
c.Cost of threads, gum, nails, etc.
d.Consumables stores
Factory printing and stationery
a.Indirect wages
b.Salaries of factory manager, foremen, supervisors, clerks, etc.
c.Salary of storekeeper
d.Salaries and fees of factory directors and technical directors
Contribution to Employees State Insurance, provident fund, leave pay, etc., of factory employees Indirect expenses
a.Rent of factory buildings and land
b.Insurance of factory building, plant and machinery
c.Municipal taxes of factory building
d.Depreciation of factory building, plant and machinery, and their repairs and maintenance charges
e.Power and fuel used in factories
f.Factory telephone expenses