Administration overhead

Please suggest example of administration overhead related to production. 

Replies (4)
Quick Summary
This discussion clarifies what constitutes administration overhead in a production context. It distinguishes between direct production costs and administrative expenses, correcting an initial misunderstanding about direct materials. The conversation highlights that direct materials, direct labour, and direct expenses are components of prime cost, not administrative overhead.

Wages paid to factory staff, direct material purchased are some examples of administrative overheads related to production.

 

"Direct materials purchased" is not categorised under administration overhead . 

Sorry for the error

Can you please tell me the category 'Direct Materials Purchased' falls under?

Direct materials, direct labour, direct expenses are part of prime cost. 

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