Examlex
When using a highlighter in a science textbook, you should be careful to highlight only important terms and facts.
Factory Overhead
All indirect costs associated with manufacturing, excluding direct materials and direct labor. Also known as manufacturing overhead, this includes costs such as utilities, depreciation, and maintenance of equipment.
Direct Labor
Labor costs directly attributable to the production of goods, including wages paid to workers who are actively involved in the manufacturing process.
Direct Material
Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.
Variable Manufacturing Costs
Costs that vary in proportion to changes in the level of production, including direct materials, direct labor, and variable overhead.
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