A department's overhead costs are generally caused by a variety of factors including the range of products processed in the department, the number of batch set-ups that are required, and the complexity of the products.

Overhead Costs

Expenses related to the operation of a business that are not directly associated with the production of goods or services, such as rent and utilities.

Batch Set-ups

The process of preparing and adjusting equipment and processes for a specific batch of production.

Complexity

The state or quality of being intricate or complicated, often used to describe systems, processes, or situations that are difficult to understand or manage.