Part of Factory Overhead: Item Yes/No a. Plant manager's salary at Buffalo, New York, stamping plant, which manufactures auto and truck subassemblies b. Depreciation on Flat Rock, Michigan, assembly plant c. Dividends paid to shareholders d. Machine lubricant used to maintain the assembly line at the Louisville, Kentucky, assembly plant e. Leather to be used on vehicles that have leather interiors f. Depreciation on mechanical robots used on the assembly line g. Consultant fees for a study of production line efficiency h. Dealership sales incentives i. Vice president of human resources' salary j. Property taxes on the Detriot, Michigan, headquarters building

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.