Factory overhead, also known as manufacturing overhead, can be charged on the basis of several different factors. Here's a breakdown of each option:

a. Material Cost: This refers to the cost of all the materials used in the production process. Factory overhead can be charged based on this cost, as it is a significant part of the manufacturing process.

b. Direct Expenses: These are costs that can be directly attributed to the production of a specific item, such as the wages of a worker who is only involved in that product's production. Factory overhead can be charged based on these expenses.

c. Labour Cost: This is the cost of the work done by employees in the production process. Factory overhead can be charged based on this cost, as labour is a crucial part of manufacturing.

d. Prime Cost: This is the total cost of direct materials and direct labour used in production. Factory overhead can be charged based on the prime cost, as it encompasses both material and labour costs.

In conclusion, factory overhead can be charged based on material cost, direct expenses, labour cost, or prime cost. The choice of basis depends on the specific circumstances and practices of the manufacturing company.

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Factory overhead, also known as manufacturing overhead, can be charged on the basis of several different factors. Here's a breakdown of each option:

a. Material Cost: This refers to the cost of all the materials used in the production process. Factory overhead can be charged based on this cost, as it is a significant part of the manufacturing process.

b. Direct Expenses: These are costs that can be directly attributed to the production of a specific item, such as the wages of a worker who is only involved in that product's production. Factory overhead can be charged based on these expenses.

c. Labour Cost: This is the cost of the work done by employees in the production process. Factory overhead can be charged based on this cost, as labour is a crucial part of manufacturing.

d. Prime Cost: This is the total cost of direct materials and direct labour used in production. Factory overhead can be charged based on the prime cost, as it encompasses both material and labour costs.

In conclusion, factory overhead can be charged based on material cost, direct expenses, labour cost, or prime cost. The choice of basis depends on the specific circumstances and practices of the manufacturing company.

Knowee AI · Accepted Answer

Factory overhead, also known as manufacturing overhead, can be charged on the basis of several different factors. Here's a breakdown of each option:

a. Material Cost: This refers to the cost of all the materials used in the production process. Factory overhead can be charged based on this cost, as it is a significant part of the manufacturing process.

b. Direct Expenses: These are costs that can be directly attributed to the production of a specific item, such as the wages of a worker who is only involved in that product's production. Factory overhead can be charged based on these expenses.

c. Labour Cost: This is the cost of the work done by employees in the production process. Factory overhead can be charged based on this cost, as labour is a crucial part of manufacturing.

d. Prime Cost: This is the total cost of direct materials and direct labour used in production. Factory overhead can be charged based on the prime cost, as it encompasses both material and labour costs.

In conclusion, factory overhead can be charged based on material cost, direct expenses, labour cost, or prime cost. The choice of basis depends on the specific circumstances and practices of the manufacturing company.

actory overhead can be charged on the basis of -.a.material cost.b.direct expensesc.labour cost.d.prime cost.

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