ECONOMICS

Detailed explanation-1: -4. Factory insurance costs. 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.

Detailed explanation-2: -Fixed manufacturing overhead incurred is that component of factory overhead that does not vary with production volume. Examples of these costs are depreciation, the salaries of production managers, and insurance for the production facility.

Detailed explanation-3: -What is Actual Overhead? Actual overhead is the amount of indirect factory costs that are actually incurred by a business. Examples of actual overhead are the salaries of production supervisors, depreciation on production equipment, and the upkeep of manufacturing facilities and equipment.