1. Overhead
distribution

3. Departmentalization P1 P2 P3
1 Process of dividing the factory into number
of Segments Is called Departmentalization P1 P2 P3 S1 S1
Prod Departments
Service Dept.

4. Departmentalization P1 P2 P3
2 Process of allocating and apportioning POHEs to different departments or
cost centers (Prod & Service )
Factory
Overheads P1 P2 P3 S1 S1
Prod Departments
Service Dept.

5. Departmentalization P1 P2 P3 S1 S1 Service Dept. Factory Overheads
Allocation &
Apportionment P1 P2 P3 S1 S1
Prod Departments
Service Dept.

6. Service Departments Stores Boiler House Canteen Transport Maintenance
Repair
Department
Maintenance
Department
Power House
Fire Protection
Canteen
Purchase
Tool Room
Personnel
Department
Stores
Boiler
House
Time-Keeping
Transport

7. Distribution of Overhead ALLOCATION APPORTIONMENT Specific Costs
Common
Costs
Specific
Costs

8. Distribution of Overhead ALLOCATION Allocating whole amount Of an item
of POHs to the
department for which
The expenditure was
incurred
Specific
Costs

9. Distribution of Overhead APPORTIONMENT Common costs are apportioned
Amongst different departments
or cost centers on some basis
Common
Costs

10. Principal Basis of Apportionment Of Overheads
Floor Area
Capital Value Of Assets
Number Of Employees
Machine Hours
Direct Labour Hours
Light Points
Kilowatt Hours
Technical Analysis

11. Floor Area Occupied Capital Value
BASIS FOR APPORTIONMENT
Rent, Rates & Taxes, Lighting & Heating
Insurance & depreciation of Building,
Cost of repairs & maintenance of
Building, Air Conditioning
Floor Area
Occupied
Capital
Value
Insurance & Depreciation on Plant &
Machinery, maintenance of PM,
Insurance on building, etc

12. No.Of Employees Machine Hours
BASIS FOR APPORTIONMENT
No.Of
Employees
Welfare Expenses, time-Keeping ,pay-roll
Office, Canteen, Recreation, Supervision
Medical Expenses
Machine
Hours
Repairs & Maintenance of Plant &
Machinery

13. Direct Labour Hrs BASIS FOR APPORTIONMENT Light Points Or
Work’s Manager’s Remuneration, Salary of
Supervisors etc
Light Points Or
Kilowatt Hours
Electricity Charges

14. Technical Estimate Horse Power
BASIS FOR APPORTIONMENT
Technical
Estimate
Where not possible to apportion on some
Bases Technical estimate is made
Horse
Power
Motive Power Expenses

15. Store Keeping Expenses
BASIS FOR APPORTIONMENT
Value or
Weight of
Materials
Store Keeping Expenses
Truck Mileage
Tonnage
Truck Hours
No.Of Pakages
Transport Service Expenses

16. PRINCIPLES OF APPORTIONMENT
Utility or
Service
Principle
Survey Method
Ability To Pay
Efficiency
Principle

17. PRINCIPLES OF APPORTIONMENT
Utility or
Service
Principle
Service or Benefits
received
By the department

18. Ability To Pay What the Traffic can bear Basis of Sales or Profit
PRINCIPLES OF APPORTIONMENT
Ability To Pay
What the Traffic can bear
Basis of Sales or Profit

19. Survey Method PRINCIPLES OF APPORTIONMENT
When Difficult to select Basis
Production Manager’s Salary
(Time spent in Each Dept)

20. PRINCIPLES OF APPORTIONMENT
Out put as the basis
Higher Production
Low Overhead Rate
Low Production
High OH Rate
Efficiency
Principle

21. Quick Check Identify the Basis for following Overheads Rent
Plant Repairs
Power
Depreciation of Building
Building Repairs
Insurance Of Building
Fire Insurance of Stock
Lighting Expenses
Supervision
ESI
Employer’s Cont. to PF
Amenities To Staff
Canteen
Gn. Overheads
Floor Area
Value of Plant
Machine Hours/HP/VM
Value Of Building
Value Of Stock
No.Of Light Points
No.Of Employees
Kilowatt/Value of Plant
Direct Wages
No.Of Employees/Wages

22. Summary Of Departmental Overhead Distribution
Production Departments
Total
(Rs)
Particulars
Basis
A B C D
(Rs) (Rs) (Rs) (Rs)
Rent Area(15:11:9:5) ,
Plant Maintenance Value Of Mch. (4:3:2:1) ,
Depreciation Value Of Mch. (4:3:2:1)
Lighting Area(15:11:9:5)
Insurance Stock Value(5:3:2) ,
Employer's Cont to PF Wages (4:3:2:1)
Energy Value Of Mch. (4:3:2:1) ,
Supervision No.Of Emp (6:4:3:2) , ,
Total , , , , ,095

23. Summary Of Departmental Overhead Distribution
Production Dept.
Total
(Rs) SD
Particulars
Basis
A B C D
(Rs) (Rs) (Rs) (Rs)
Rent Area , ,750 2,750 2,250 1,250
Repairs To Plant Value Of Plant , ,400 1,800 1,
Depreciation “ , ,800 1,
Lighting Light Points ,
Supervision No Of Employees 15,000 6,000 4,500 3, ,500
Fire Insurance Value Of Stock ,000 2,500 1,500 1,
Power Value Of Plant , ,600 2,700 1,
ESI Wages ,
Total , ,500 15,27510, ,025

24. Redistribution of Overheads
Reapportionment of Overheads
Secondary Distribution Of Overheads

25. JOIN KHALID AZIZ ACCOUNTING(FINANACIAL & COST) OF
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26. Service Department Cost Re-Apportionment
Production Departments
Service Departments
Carry out the central purposes of an organization.
Provide support that facilitates the activities of production departments.

27. The Need for Cost Re-Apportionment
First, we identify the factor that drives costs in the service department.
This cost driver is used as the apportionment base.
How are service department costs charged to operating departments?

28. The Need for Cost Apportionment
Second, we measure the consumption of the apportionment base in the operating departments.

29. The Need for Cost Apportionment
Third, we apportion the service department cost based on the relative amount of the apportionment base used in each operating department.

30. The Need for Cost Apportionment
Apportioned service department costs become a part of the overhead in each operating department.
What happens to service department costs after they are apportioned to operating departments?

31. The Need for Cost Apportionment
First Stage Apportionment
Service department costs are apportioned to operating departments.
Service Department
(Cafeteria)
Operating Department
(Machining)
Service Department
(Accounting)
The Products
Operating Department
(Assembly)
Service Department
(Personnel)

32. The Need for Cost Apportionment
Second Stage Apportionment
Operating department overhead costs and apportioned service department costs are applied to products.
Service Department
(Cafeteria)
Operating Department
(Machining)
Service Department
(Accounting)
The Products
Operating Department
(Assembly)
Service Department
(Personnel)

33. Selecting Apportionment Bases
Personnel:
Number of employees
Criteria
Custodial:
Square footage
Easiest
Receiving:
Units handled
Cafeteria:
Number of employees
Accounting:
Staff hours
Security:
Square footage
Power:
Kilowatt hours

34. Re- apportionment Basis
No of Purchase Orders or value of Materials
Purchased for each Production Department
Purchase
Department
Value or Quantity of Materials Issued
No. Of Materials Requisitions
Stores

35. Inspection Hrs. Devoted to each
Re- apportionment Basis
Internal Transport
Weight & Distance
Inspection Hrs. Devoted to each
Department
inspection

36. Re- apportionment Basis
Time Keeping,
Security
Canteen
Welfare
Recreation
Medical
Personnel
Pay Roll
Number Of Employees
Total Labour Hours or
Wages or Salaries

37. Re- apportionment Basis
Maintenance
Department
Hrs. Devoted or Worked for
Each Department
No .Of Employees
Factory
Office

38. Re- apportionment Basis
Building
Service Deptt
Relative Area Of Each Deptt
% Of Steam Utilized
Boiler
House

39. Interdepartmental Services
Problem
Re Apportioning costs when service departments provide services to each other
Solutions
Direct Method
Step method
Reciprocal method

40. Direct Method Service Department (Cafeteria) Operating Department
(Machining)
Interactions between service
departments are ignored and all
costs are allocated directly to operating departments.
Service Department
(Custodial)
Operating Department
(Assembly)

41. Direct Method Example

42. Direct Method Example

43. Direct Method Example Apportionment base: Number of employees
INR 360,000 × 20
= INR 144,000
Apportionment base: Number of employees

44. Direct Method Example Apportionment base: Number of employees
INR 360,000 × 30
= INR 216,000
Apportionment base: Number of employees

45. Direct Method Example = INR 30,000
25,000
25, ,000
= INR 30,000
Apportionment base: Square feet occupied

46. Direct Method Example Apportionment base: Square feet occupied 50,000
25, ,000
INR 90,000 ×
= INR 60,000
Apportionment base: Square feet occupied

48. Production Department
Overhead Analysis Sheet
Items
Basis
Total
(Rs.)
Production Department
Service Department P1 P2 P3
Office
Workshop
Indirect wages
Indirect materials
General overhead
Amenities to staff
Employer’s contribution to E.S.I.
Power
Depreciation
Apportionment of workshop overhead
Apportionment of office overhead
Actual
Direct wages
(4:5:6)
No.of employees
(6:5:6:3:5)
Direct Wages
H.P. of machine X
Machine hours worked
(6:16:15:1)
15% of value of machinery
Machine hours
(2:4:3)
25,000
10,950
1,500
12,500
1,200
3,800
15,750
3,000
2,000
400
320
600
4,500
500
2,500
1,600
5,250
4,000
480
3,750
10,000
1,100 -
5,000
1,850
100
2,250
70,700
13,820
2,600
3,360
16,250
5,200
4,200
16,330
3,900
5,040
12,600
(-12,600
11,700
(-) 11,700
Allocated overhead Total
19,780
25,650
25,270

49. Bharat Engineering Works Departmental
Overhead Distribution Statement (For 12 Months)
Particulars of Expenses
Basis of Distribution
Total Rs.
Production Deptts.
Service Dept. A B C S
Rent
Power
Indirect wages
Depreciation of machinery
Electricity
Canteen expenses
Direct wages
Floor space
(30:25:45:20)
H.P. of machine
(65:30:30:40)
Direct Wages
(12:14:18:8)
Value of machine
(50:60:80:10)
Light points
(7:7:9:5)
No. of workers
(2:3:6:2)
Actual
36,000
8,250
5,200
22,000
5,600
6,500
8,000
9,000
3,250
1,200
5,500
1,400
1,000
---
7,500
1,500
6,600
13,500
1,800
8,800
3,000
6,000
2,000
800
1,100
91,550
21,350
+5,970
19,900
+3,980
30,400
+9,950
-19,900
Re-distribution of expenses of service department to the production departments on the basis of service rendered 30%: 20%:50%
Allocated overhead total (A)
Effective labour hours (see workings)
(No. of worker x working hours) (B)
27,320
23,880
40,350
Nil
3,200
4,800
9,600
Labour hour rate (A ÷ B)
8.5375
4.975
4.203

50. Step Method Service Department (Cafeteria) Operating Department
(Machining)
Once a service department’s costs are apportioned, other service department costs are not allocated back to it.
Service Department
(Custodial)
Operating Department
(Assembly)

51. Step Method Service Department (Cafeteria) Operating Department
(Machining)
Custodial will have a new total to Apportion to operating departments; its own costs plus those costs allocated from the cafeteria.
Service Department
(Custodial)
Operating Department
(Assembly)

52. Step Method
Identify the SD which renders service to larger No’s of other Deptts
2 Distribute its Costs to other Deptts , Including service Department
3 Identify the next service Department. Which renders service to the next largest No’s
4 Continue the process till Amount is Exhausted
5 If all SD renders service to = No of Departments. Than cost of SD with largest amount be taken first

53. JOIN KHALID AZIZ ACCOUNTING(FINANACIAL & COST) OF
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54. Step Method Example
We will use the same data used in the direct method example.

55. Step Method Example
Apportion Cafeteria costs first since it provides more service than Custodial.

56. Step Method Example Apportionment base: Number of employees
INR 360,000 × 10
= INR 60,000
Apportionment base: Number of employees

57. Step Method Example Apportionment base: Number of employees 20
INR 360,000 × 20
= INR 120,000
Apportionment base: Number of employees

58. Step Method Example Apportionment base: Number of employees 30
INR 360,000 × 30
= INR 180,000
Apportionment base: Number of employees

59. Step Method Example
New total = INR 90,000 original custodial cost plus INR 60,000 apportioned from the cafeteria.

60. Step Method Example Apportionment base: Square feet occupied 25,000
INR 150,000 ×
25,000
25, ,000
= INR 50,000
Apportionment base: Square feet occupied

61. Step Method Example Apportionment base: Square feet occupied
INR 150,000 ×
50,000
25, ,000
= INR 100,000
Apportionment base: Square feet occupied

62. Comparison of Methods

63. SECONDARY OVERHEAD DISTRIBUTION SUMMARY
Particulars
Total Rs.
Base
Service Departments (Rs.)
Production Departments P Q R S X Y Z
Factory overhead
Add :
Service
Dept.costs
5,95,000
Given
No. of
Employees
(50:40:50:
100:125:85)
DLHs
Rs.80,000 in
(6:3:4:3:4)
Area
(Rs.1,33,000 in (10:30:15:
15)
DLHs (Rs.66,000 in 4:3:4)
45,000
-45,000
75,000
5,000
-80,000
1,05,000
4,000
24,000
-1,33,000
30,000
12,000
19,000
-66,000
1,93,000
10,000
16,000
57,000
64,000
12,500
28,500
18,000
83,000
8,500
Total OHEs of prod.depts
3,00,000
1,35,000
1,60,000

64. Reciprocal Services Method
Service Department
(Cafeteria)
Operating Department
(Machining)
Interdepartmental services are given full recognition rather than partial recognition as with the step method.
Service Department
(Custodial)
Operating Department
(Assembly)
Because of its mathematical complexity, the reciprocal method is rarely used.

65. Trial & Error Method Repeated Distribution Method
Reciprocal Services Methods
Trial & Error
Method
Repeated
Distribution
Method
Algebraic
Simultaneous
Equation
Method

66. Reciprocal Services Methods
Trial & Error
Method
Cost Of one Service Dept (Say A ) is apportioned
To another Service Dept (Say B) based on service rendered
The cost of another dept (B) plus its share
In the cost of first service department (A)
Is again apportioned to first service department
The amount so apportioned to A will again be apportioned
to the service department B
The process continues till amount becomes negligible

67. Total Calculation Of Total Costs Of Service Departments X Y Charge
Service Departments (Rs)
X Y
Total Exp as per Primary Distribution , ,000
Charge
10% 0f Rs 23,400 (X) to Y ,340
20% of Rs.32,340 (Y) to X ,468
10% of Rs.6,468 (X) to Y
20% of Rs.647 (Y) to X
10% of Rs.129 (X) to Y
20% of Rs.12 (Y) to X
(Since Rs.3 to be apportioned is very small
distribution process is stopped )
Total
30, ,000

68. Secondary Overhead Distribution Summary
Particulars
Production Departments (Rs.)
Total Rs. A B C
Total expenses as per primary overhead distribution summary
Add Service Dept. Costs :
X : Rs.30,000 at 20%, 40%
& 30% to A,B, and C
Y : Rs.33,000 at 40%, 20%
& 20% to A, B & C
80,000
6,000
13,200
70,000
12,000
6,600
50,000
9,000
2,00,000
27,000
26,400
Total
99,200
88,600
65,600
2,53,400

69. Repeated Distribution Method
Reciprocal Services Methods
Repeated
Distribution
Method
1 Distribute the cost of a service Dept . to the Production
and service department Using the percentage
2 Apportion the cost of 2nd service department (Aggregate)
to production and other service department as per % given
3 Use the same procedure with other service departments
till the cost of service departments become negligible

70. Question
A factory is having 3 prod . Departments A,B & C, and 2 service
Departments Boiler House and Pump Room. The boiler house
was to depend upon the pump Room for supply of water and in turn ,
depends upon the boiler house for supply of steam power for driving
the pump The expenses incurred by the production department
during the period are: A Rs 8,00,000,B Rs 7,00,000
And C Rs 5,00,000.The expenses of Boiler house are Rs 2,34,000
and the Pump House Rs 3,00,000.The expenses of Boiler House
and Pump house are Apportioned to the prod. departments
on the following basis
A B C BH PR
Expenses Of Boiler House % % % %
Expenses Of Pump Room % % % %

71. Secondary Overhead Distribution Summary
Prod Departments (Rs)
Service Dept (Rs)
Particulars
Total Rs
Basis
A B C Boiler Pump
P Distribution 25,34, given 8,00, ,00, ,00, ,34, ,00,000
Add Service Dept. Costs
Boiler House :40:30: , , , ,34, ,400
Pump Room :20:20:20 1,29, , , , ,23,400
Boiler House :40:30: , , , , ,468
Pump Room :20:20: , , , , ,468
Boiler House ::40:30:
Pump House :20:30:
Boiler House :40:20:
Pump House :20:20:
Total 25,34, ,92,000 8,86,000 6,56,

72. Reciprocal Services Methods
Algebraic
Simultaneous
Equation
Method
Total Costs of Service Departments are
Expressed in algebraic equation
Equations are developed on the basis of
Primary distribution & % of service rendered to each other
Total Costs of Service Departments can
Be calculated by solving EQUATIONS

73. Algebraic Equation X= OHE’s + % of Y Y= OHE’s + % of X
Service Department OHE’S can be apportioned
M N P R S
R % 30% 40% %
S % 40% 10% 20% -

74. Quick Check Data The direct method of Apportionment is used.
Allocation bases:
Business school administration costs (ADMIN): Number of employees
Business administration computer services (BACS): Number of personal computers

75. Quick Check 
How much cost will be apportioned from Administration to Accounting?
a. INR 36,000
b. INR144,000
c. INR180,000
d. INR 27,000

76. Quick Check 
How much cost will be apportioned from Administration to Accounting?
a. INR 36,000
b. INR144,000
c. INR180,000
d. INR 27,000
INR180,000X 20
= INR 36,000

77. Quick Check 
How much total cost will be apportioned from ADMIN and BACS combined to the Accounting Department?
a. INR 52,500
b. INR135,000
c. INR 270,000
d. INR 49,500

78. Quick Check 
How much total cost will be apportioned from ADMIN and BACS combined to the Accounting Department?
a. INR 52,500
b. INR 135,000
c. INR 270,000
d. INR 49,500
INR 90,000 × 18
= INR 13,500

79. Quick Check Data The step method of apportionment is used.
Apportionment bases:
Business school administration costs (ADMIN): Number of employees
Business administration computer services (BACS): Number of personal computers

80. Quick Check 
How much total cost will be apportioned from ADMIN and BACS combined to the Accounting Department?
a. INR 35,250
b. INR 49,072
c. INR 18,000
d. INR 26,333

81. Quick Check 
How much total cost will be apportioned from ADMIN and BACS combined to the Accounting Department?
a. INR 35,250
b. INR 49,072
c. INR 18,000
d. INR 26,333

82. Overhead
Appropriation
Few Questions

83. 4. SECONDARY DISTRIBUTION SUMMARY
Cost of service department
Basis of apportionment
Total Rs.
Production Department P1 P2 P3
primary distribution
Canteen
Power house (light)
Power house (power)
Stores
Time keeping & accounts
Repair shop
---
No. of employee
(6:5:4)
No. of light points
(3:4:5)
House Power
(3:2:3)
No. of requisitions
(4:3:5)
Value of assets
(2:3:4)
63,000
1,500
1,200
4,000
3,600
3,000
4,500
20,000
600
300
1,000
18,000
500
400
900
25,000
800
2,000
Allocated overhead Total
80,800
25,800
23,300
31,700

84. Production Department
1. Overhead Analysis Sheet
Items
Basis
Total
(Rs.)
Production Department
Service Department P1 P2 P3
Office
Workshop
Indirect wages
Indirect materials
General overhead
Amenities to staff
Employer’s contribution to E.S.I.
Power
Depreciation
Apportionment of workshop overhead
Apportionment of office overhead
Actual
Direct wages
(4:5:6)
No.of employees
(6:5:6:3:5)
Direct Wages
H.P. of machine X
Machine hours worked
(6:16:15:1)
15% of value of machinery
Machine hours
(2:4:3)
25,000
10,950
1,500
12,500
1,200
3,800
15,750
3,000
2,000
400
320
600
4,500
500
2,500
1,600
5,250
4,000
480
3,750
10,000
1,100 -
5,000
1,850
100
2,250
70,700
13,820
2,600
3,360
16,250
5,200
4,200
16,330
3,900
5,040
12,600
(-) 12,600
11,700
(-) 11,700
Allocated overhead Total
19,780
25,650
25,270

85. Overhead rate per working hour [(A) ÷(B)]
2. OVERHEAD ANALYSIS SHEET
Items
Basis
Total
(Rs.)
Production Deptt .(Rs)
Service Deptt( Rs). P1 P2 P3 S1 S2
Rent and rates
General lighting
Indirect wages
Power
Depreciation
Direct wages
Indirect materials
Apportionment of Service Departments
Overhead
Floor space
(4:5:6:4:1)
Light points
(2:3:4:2:1)
(600:400:600:300:39)
H.P. of Machine
(6:5:5:1)
Value of machines
(12:16:20:1:1)
Actual
(3:2:3)
Given
(2:3:5)
Total (A)
Working hours (B)
5,000
600
1,939
1,500
10,000
1,695
966
1,000
100
2,400 -
300
1,250
150
400
3,200
200
500
4,000
250 50 39
195
266
21,700
1,200
5,500
800
7,000
(-) 3,200
(-) 1,000
6,400
2,560
6,600
3,000
8,700
Nil
Overhead rate per working hour [(A) ÷(B)]
2.50
2.20
5.80

86. ( Rs) COST OF PRODUCT – X Direct material Direct Labour Prime Cost
Factory Overhead :
P1 : 4 x 2.50
P2 : 5 x 2.20
P3 : 3 x 5.80
Cost of Product X
10.00
11.00
17.40
50.00
30.00
80.00
38.40
118.40
( Rs)

87. 3. SECONDARY OVERHEAD DISTRIBUTION SUMMARY
Particulars
Total Rs.
Base
Service Departments (Rs.)
Production Departments P Q R S X Y Z
Factory overhead
Add :
Service
Dept.costs
5,95,000
Given
No. of
Employees
(50:40:50:
100:125:85)
DLHs
Rs.80,000 in
(6:3:4:3:4)
Area
(Rs.1,33,000 in (10:30:15:
15)
DLHs (Rs.66,000 in 4:3:4)
45,000
-45,000
75,000
5,000
-80,000
1,05,000
4,000
24,000
-1,33,000
30,000
12,000
19,000
-66,000
1,93,000
10,000
16,000
57,000
64,000
12,500
28,500
18,000
83,000
8,500
Total OHEs of prod.depts
3,00,000
1,35,000
1,60,000

88. 5. OVERHEAD DISTRIBUTION STATEMENT
Particulars of Expenses
Basis of Apportionment
Total Rs.
Production Deptts.
Service Deptts. X Y A B
Depreciation
Rent, Rates & Taxes
Power
Ins.on assets
Canteen exp.
Electricity
Direct wages
Direct material
Assets value
(10:5:3:1)
Floor space
(5:4:1:2)
H.P. of machine
(10:5:4:1)
No. of workers
(100:50:50:25)
Light points
(25:15;10:10)
Actual
38,000
18,000
12,500
9,500
5,400
3,600
8,000
4,000
20,000
7,500
6,250
5,000
2,400
1,500
---
10,000
6,000
3,125
2,500
1,200
900
600
2,000
3,000
625
500
3000
99,000
42,650
+11,150
23,725
+7,433
22,300
-22,300
10,325
+3,717
Re-distribution of expenses of Deptt. A among X, Y and B in ratio 3:2:1
Re-distribution of expenses of Dept. B between X and Y equally
53,800
+7,021
31,158
Nil
14,042
-14,042
Allocated overhead
60,821
38,179

89. 7. STATEMENT SHOWING OVERHEAD EXPENSES OF PRODUCTION
DEPARTMENTS A AND B
Particulars of Expenses
Basis of Apportionment
Total Rs.
Production Deptts.
Service Deptts. A B C D
Direct material
Direct labour Depreciation
Rent,Rates & Tax
Insurance
Power
Canteen exp.
Electricity
Actual
Value of Assets
(10:5:3:1)
Floor space
(5:4:1:2)
H.P. of machine
(10:5:4:1)
No. of workers
(100:50:50:25)
Light points
(25:15;10:10)
5,000
15,000
95,000
18,000
7,600
10,000
5,400
2,400
---
50,000
7,500
4,000
1,000
25,000
6,000
2,000
2,500
1,200
600
3,000
1,500
400
500
1,58,400
69,900
37,300
34,300
16,900
Re-distribution of expenses of service department ‘C’ Rs. 12,000 to D and balance of Rs. 22,300 to A:B= 3:2
Re-distribution of expenses of service Department “D” to A:B = 9:1
+13,380
+8,920
(-) 34,300
+12,000
83,280
26,010
46,220
2,890
Nil
28,900
(-)28,900
Allocated overhead total
1,09,290
49,110

90. thanks

91. ATTENTION COMMERCE STUDENTS
ACCOUNTING(FINANACIAL & COST) OF
ICMAP STAGE 1,2,3,4 (NEW CLASSES)
CA..MODULE B,C,D
PIPFA (FOUNDATION,INTERMEDIATE,FINAL)
ACCA-F1,F2,F3
BBA,MBA
B.COM(FRESH),M.COM
MA-ECONOMICS..O/A LEVELS
KHALID AZIZ…