total of all costs of manufacturing except direct materials and direct labor, also called manufacturing overhead, indirect manufacturing expenses, factory expenses, and factory burden. In addition to indirect material and indirect labor, it includes such items as depreciation, setup costs, quality costs, cleanup costs, fringe benefits, payroll taxes, and insurance. It is an inventoriable cost charged by allocation to work-in-process (WIP).
Dictionary of Accounting Terms for: factory overhead
Dictionary of Business Terms for: factory overhead