ECONOMICS

Detailed explanation-1: -While total insurance costs are part of a company’s overhead, the insurance costs solely related to the factory are part of its factory overhead. These costs can include insurance fees for the factory building, various pieces of equipment, employee health and safety, vehicles and any other insured factory item.

Detailed explanation-2: -Manufacturing overhead costs include indirect materials, indirect labor, and all other manufacturing costs. Depreciation on factory equipment, factory rent, factory insurance, factory property taxes, and factory utilities are all examples of manufacturing overhead costs.

Detailed explanation-3: -Overhead expenses are what it costs to run the business, including rent, insurance, and utilities.