Factory Overhead Costs

Factory overhead is the costs acquire during the manufacturing process, not including the costs of direct labor and materials.Factory overhead is normally aggregated into cost pools and allocated to units produced during the period. It is charged to expense when the produced units are later sold as finished goods or written off.

Procedures for Materials, Labor, and Factory Overhead Costs Accumulations

Rubab Ali Process Costing System

Procedures for Materials, Labor, and Factory Overhead Costs Accumulations: In process costing, materials, labor, and factory overhead costs are accumulated in the usual accounts, using normal cost accounting procedures. Costs are then analyzed by departments or processes and charged to departments by appropriate journal