Emergency repairs or additional supervisors for an unanticipated second shift will likely lead to an unfavorable fixed overhead spending variance.
Accounting fees, advertising, insurance, interest, legal fees, labor burden, rent, repairs, supplies, taxes, phone bills, travel expenses, and utilities are examples of overhead expenses. Administrative overheads and manufacturing overheads are the two main types of business overheads.
Overhead costs, also known as overhead or operating expenses, are expenses associated with running a business that is not directly related to the creation or production of a product or service. They are the expenses incurred by the company to remain in business, regardless of its level of success.
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