ECONOMICS

Detailed explanation-1: -Depreciation on factory equipment, factory rent, factory insurance, factory property taxes, and factory utilities are all examples of manufacturing overhead costs.

Detailed explanation-2: -Rent on a factory building is a fixed cost. Rent on a factory building is a fixed cost because the rent has to be paid even if the goods or services are not produced in the factory. Rent on a factory building is an indirect cost.

Detailed explanation-3: -The rental cost of a building used in manufacturing is part of manufacturing overhead. Manufacturing overhead is assigned or allocated to the units produced. As a result, the units produced include part of the rent of the manufacturing building.

Detailed explanation-4: -Manufacturing overhead is also known as factory overheads or manufacturing support costs. Overhead costs such as general administrative expenses and marketing costs are not included in manufacturing overhead costs.