ECONOMICS

Detailed explanation-1: -Examples of variable overheads include shipping costs, office supplies, advertising and marketing costs, consultancy service charges, legal expenses, as well as maintenance and repair of equipment.

Detailed explanation-2: -Maintenance could be either a fixed or variable cost. If maintenance is due for each unit produced and it has a cost per unit, then it would be a variable cost. If it is independent of the amount produced (eg the client pays a fixed fee per year for general maintenance of a factory), then it would be a fixed cost.

Detailed explanation-3: -Key Takeaways Examples of variable overhead include production supplies, energy costs to run production lines, and wages for those handling and shipping the product.

Detailed explanation-4: -Maintenance expenses incurred to maintain and repair equipment directly related to the manufacturing process are considered manufacturing overhead expenses.

Detailed explanation-5: -Manufacturing overhead costs include your equipment maintenance costs, as well as labor for completing repairs, replacement parts needed, and the cost of replacing equipment when repairs are not feasible. Other costs included in manufacturing overhead include: Equipment depreciation.