ECONOMICS

Detailed explanation-1: -Manufacturing overhead includes such things as the electricity used to operate the factory equipment, depreciation on the factory equipment and building, factory supplies and factory personnel (other than direct labor).

Detailed explanation-2: -Usually manufacturing overhead costs include depreciation of equipment, salary and wages paid to factory personnel and electricity used to operate the equipment.

Detailed explanation-3: -Factory overhead is the costs incurred during the manufacturing process, not including the costs of direct labor and direct materials. Factory overhead is normally aggregated into cost pools and allocated to units produced during the period.

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.

Detailed explanation-5: -Production Overhead: Costs associated with running a production process, such as machinery maintenance, rent, utilities, and depreciation.