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Factory overhead, also called manufacturing overhead, manufacturing overhead costs (MOH cost), work overhead, or factory burden in American English, is the total cost involved in operating all production facilities of a manufacturing business that cannot be traced directly to a product. [1] It generally applies to indirect labor and indirect cost.
Manufacturing cost is the sum of costs of all resources consumed in the process of making a product. The manufacturing cost is classified into three categories: direct materials cost, direct labor cost and manufacturing overhead. [1] It is a factor in total delivery cost. [2]
A pre-determined overhead rate is normally the term when using a single, plant-wide base to calculate and apply overhead. Overhead is then applied by multiplying the pre-determined overhead rate by the actual driver units. Any difference between applied overhead and the amount of overhead actually incurred is called over- or under-applied overhead.
In business, an overhead or overhead expense is an ongoing expense of operating a business. Overheads are the expenditure which cannot be conveniently traced to or identified with any particular revenue unit, unlike operating expenses such as raw material and labor.
The term reflux [1] [3] [4] is very widely used in industries that utilize large-scale distillation columns and fractionators such as petroleum refineries, petrochemical and chemical plants, and natural gas processing plants.
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The duty of the reboiler and overhead condenser are calculated by the model to achieve a specified composition or other parameter of the bottom and/or top product. The simulation calculates the chemical and physical properties of the product streams, each is assigned a unique number which is used in the mass and energy diagram.
In a 2018 report by the US Bureau of Labor Statistics, they indicate that petroleum refinery workers have a significantly lower rate of occupational injury (0.4 OSHA-recordable cases per 100 full-time workers) than all industries (3.1 cases), oil and gas extraction (0.8 cases), and petroleum manufacturing in general (1.3 cases).