The cost of a factory overhead is less than the cost of a home. Even though the cost of a home is much less in comparison to the cost of a factory, that doesn’t mean the cost of a factory is any lower in comparison with the cost of a household.
This is because a house is very much a “use by” item. A good example of this is the expense in materials and labor for building a home vs. building a factory. Because you can reuse the materials and labor for a factory, you only have to pay for what it is you use. Factory overhead is still a cost, however, and that cost is dependent on the number of employees you hire.
The cost of a factory is also dependent on the number of workers it employs. You have to think about this number, because it can vary a lot by country. Here in the US the average factory employee is about 9 years old, so the cost of a factory employee is dependent on an average yearly salary.
Another reason to think about the number of workers you can hire is the cost of production. A factory employs fewer workers when the product it produces is less expensive than the cost of the labor involved in producing it.
Well, as it turns out, those nine years old aren’t a problem. The problem is how long a worker can hold out before they have to leave the job. As a general rule, new factory employees have a higher chance of leaving the factory than older workers, because older workers have to learn from their mistakes before they can leave. It is a bit different in the US, where older workers have to work longer to prove their worth before they can be transferred to other positions.
The good news is that the factory overhead costs are relatively low. In the US, for example, a new factory worker can expect to earn about $8 an hour. In China, it’s about $30 an hour. In India, it’s over $100 an hour. If you’re making more than $100 an hour in the US, you’re pretty much guaranteed to leave at some point.
The problem is that the factory overhead is spread out over a lot of different people and is not all in the same position. That means that if one worker is overworked, other workers may have to take the same position, causing inefficiency.
I know this one is hard to hear, but the factory overhead is a cost that has to be taken into account throughout your production process. This includes things like the fact that you may not be able to use all of your current skills, and that you may have to hire/train/assign people to help complete your tasks.
This is important because you cannot assume that the overhead costs will be the same for all people in your factory. This is because, in reality, all of your employees may have different skills, and may be working in different positions. You are therefore in a position where you have to take the factory overhead into account for all of your employees.