Define factory overheads

Describe briefly the term Factory overheads?

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Factory Overheads : are the overheads which are sustained from the phase of procurement of materials until the phase of finished goods.


- Indirect Materials like cotton waste, lubricants, and consumable stores and so on.
- Indirect Labor like works manager’s salary, time keeper, and storekeeper and so on.
- Indirect Expenses like carriage inward cost, factory lighting cost, depreciation on factory building, etc.

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