Factory overhead is often collected and summarized in a subsidiary factory overhead ledger.

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Factory overhead is often tracked and recorded in a subsidiary factory overhead ledger, which summarizes the various costs associated with running a factory that cannot be directly traced to a specific product or service. Examples of factory overhead costs include rent, utilities, equipment maintenance, and indirect labor. By keeping track of these costs in a separate ledger, manufacturers can more accurately determine the true cost of producing their products and services.

Factory Overhead Is Often Collected and Summarized in a Subsidiary