Asked by Jaydan MacMaster on Jul 04, 2024
Verified
Factory overhead cost is sometimes referred to as factory burden.
Factory Overhead Cost
This rephrases "Factory Overhead" as the total expenses related to the operation of a factory that is not directly tied to a specific product or service.
Factory Burden
Another term for manufacturing overhead or factory overhead.
- Attain an understanding of the allocation of manufacturing costs into direct materials, direct labor, and factory overhead.
Verified Answer
ZK
Zybrea KnightJul 04, 2024
Final Answer :
True
Explanation :
Factory overhead cost is commonly referred to as factory burden because it represents the indirect costs involved in manufacturing a product, such as rent, utilities, and maintenance expenses. These costs "burden" the factory and are therefore sometimes called factory burden.
Learning Objectives
- Attain an understanding of the allocation of manufacturing costs into direct materials, direct labor, and factory overhead.