What do overhead costs include? Postings and write-offs of overhead expenses

Overhead costs - these are costs aimed at organizing, maintaining and managing the enterprise units. Their composition is established in PBU 16, in paragraph 15. Further we consider this category in detail.

Administration

As mentioned above, overhead costs include management costs. These include:

1. Payment to staff of sites, workshops of business trips.
2. Deductions for medical insurance and social events of the administrative apparatus of structural units.
3. Costs of salary departments for managing plots, workshops, material assistance, bonuses.
4. Other administrative costs. These general production costs include the payment of postal and telephone communications, office supplies, specialized literature, periodicals, and so on.

Depreciation

It also relates to overhead costs. In the financial activities of the enterprise are taken into account:

1. Depreciation of operating systems of a linear, district, workshop purpose. The calculation of the amounts is carried out by the methods provided for in PBU 7, in paragraph 26.
2. Depreciation of intangible assets. Its calculation is carried out according to the same method that is provided for the OS.

Maintenance and operation costs

Overhead costs include the costs of maintenance and use of intangible assets and operating systems, which consist of:

1. From the cost of cleaning, lubricants and other auxiliary materials that are used in caring for the equipment and maintaining it in working condition.
2. Salaries of personnel servicing hoisting-and-transport and production plants. Such workers, for example, include electricians, adjusters, repairmen, lubricants, etc.
   
3. Deductions for medical insurance and social events of the above specialists.
4. The cost of consumed resources (water, fuel, electricity, steam, etc.) to bring the machines in motion.
5. Prices of auxiliary production services and third-party enterprises related to the maintenance and operation of equipment.
6. Costs of used fixtures and tools.
7. Costs for heating, water supply, lighting, water disposal, room maintenance.

Repair Costs

These overhead costs include the maintenance of structures and buildings. They consist of:

1. From the cost of used spare parts and building materials.
2. Salaries and deductions for social events and medical insurance for repairmen.
3. Cost of services provided by third-party firms and employees.

Overhead costs are also the costs of repairing equipment, vehicles, tools. They consist of:

1. From the cost of spare parts and other materials used in the repair process.
2. Wages of machinists, locksmiths and other workers.
3. Cost of services of auxiliary workshops and third-party repair enterprises.

Rent

Intangible assets and operating systems may not be owned by the enterprise. In the case of the conclusion of a lease, it must be established on which side the general production costs are borne. Postings in accounting will be made on the basis of precisely these conditions. The agreement also defines the procedure in accordance with which the cost of maintaining and repairing leased equipment will or will not be refunded. The tenant's uncompensated costs for maintenance of intangible assets and fixed assets are taken into account in the general manner provided for general production expenses in the reporting period. Depending on the characteristics of the enterprise, the share of individual costs in the cost of production, accounting can allocate a separate costing account. It will reflect and write off overhead costs for the operation and maintenance of equipment.

Health and Safety

These overhead costs should include:

1. Current costs for the maintenance and installation of fences for machines and their mobile elements, holes, hatches, ventilation devices
2. The costs of installing an alarm on machines to quickly stop them.
3. Costs for arranging and maintaining washbasins, disinfection chambers, laundries, showers, baths, locker rooms, wardrobes, etc.
4. The cost of materials that were used for the arrangement and maintenance of labor protection funds.
5. The price of overalls, uniforms, glasses and other protective devices that are issued to employees for the safe performance of their professional duties, other personal protective equipment, soap, detergents, milk, food, provided in accordance with established standards.
   

Other expenses

To overhead also include expenses:

1. To improve the technology and organization of the enterprise.
2. Maintenance of the production process.
3. Environmental protection.
4. Fees and taxes, etc.

It should be noted that the composition of the costs should be the same when accounting and planning. In industrial enterprises with a workshop management structure, costs should be accounted for in workshops.

Distribution of general production and general expenses

It is carried out according to the following scheme:

1. Select an object.
2. A base is established - an indicator through which distribution is carried out.
3. The coefficient (rate) is calculated.
4. Indirect costs are allocated to the objects in accordance with the rate.

The base is determined by the company on its own. It should be fixed in the financial policy of the organization. The distribution base, for example, may be the basic salary of production workers. This indicator is advisable to use in cases where the proportion of s / n in costs is large enough. The distribution base may be the sum of the costs of production. Costs are determined in proportion to the cost of the basic materials used in the manufacture, and the basic salary of employees.