overheads can be classified into functions,elements and behaviour.
Main group of overheads on the basis of functions
production overhead- indirect expenditure incurred in connection of production operation.e.g lubricant s, consumable stores, indirect wages, factory power and light, depreciation of plant and machinery, depreciation of factory building, store keeping expenses, repairs, maintainance etc
administrative overhead-expenses for control, direction etc e.g general management salaries, audit fees, legal charges, postage and telephone, stationary and printing, office rent& rates, office lighting and salaries of office staff.
selling overhead-these are costs of selling to create and stimulate demand or of securing orders e.g advertising salaries, commission on sales, showroom expenses, travelling expenses, bad debts, catalogs and pricelist.
distribution overhead-it comprises all expenditure incurred from the time of product is completed in the factory till it reaches customer. e.g packing costs, carriage outward, delivery van costs, ware housing costs etc.
On the basis of elements
indirect materials
indirect wages
indirect expenses
on the basis of behaviour
fixed overhead-rent&rates,managerial salaries,building depreciation,postage,stationary,legal expenses etc.
variable overhead- indirect materials
indirect wages,indirect expenses,salesman commission,power,light,fuel etc
semi-variable overhead
supervisory salaries, depreciation,repairs etc
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