The correct answer is: C. works overhead.
Factory overhead is also called works overhead. It is a type of indirect cost that is incurred in the manufacturing process but cannot be easily traced to a specific product or service. Examples of factory overhead costs include:
- Depreciation of factory equipment
- Rent on factory space
- Utilities for the factory
- Indirect labor costs, such as the salaries of supervisors and janitors
- Insurance on factory property
- Maintenance and repairs on factory equipment
Factory overhead is an important cost to track because it can have a significant impact on the profitability of a business. Businesses need to carefully manage their factory overhead costs in order to remain competitive.
A. Sundry overhead is not a common term for factory overhead. It is more likely to refer to a variety of small, miscellaneous costs that are not easily categorized.
B. Extra overhead is not a common term for factory overhead. It is more likely to refer to costs that are incurred in addition to the normal costs of production.
D. Total overhead is a more general term that can refer to all of the costs associated with running a business, including factory overhead.