Apportionment of overheads, Cost Accounting

Apportionment of Overheads

Apportionment of overheads occurs whereas the net value of an overhead item is shared among more or two cost centers that employ the overheads. This is significant that an apportionment basis that reflects the benefit extracted via a cost center is employed. For example here, the rates payable to the local authority may be apportioned on the source of area of occupancy of all cost center.

Re-apportionment of overheads happens when service department costs are charged to user departments. As like an example, the maintenance department overhead costs are summarized and after that charged to the user department, that will probably involve other service or non-production departments. Service departments do not participate directly in the manufacturing process however plays a supportive indirect role. Products do not pass via the support departments. It is for this purpose that service department costs have to be reapportioned to the production cost departments or centers.

Posted Date: 2/5/2013 7:04:28 AM | Location : United States







Related Discussions:- Apportionment of overheads, Assignment Help, Ask Question on Apportionment of overheads, Get Answer, Expert's Help, Apportionment of overheads Discussions

Write discussion on Apportionment of overheads
Your posts are moderated
Related Questions
NSC Ltd. has a 31 May fiscal year-end. NSC disposed of its Information Systems Group (ISG) on 31 January 20X3. ISG had a net loss (after taxes) of $37,700,000 in 20X3, to the date

Kaplan Computers manufactures high end computer systems for the graphics design industry. At the present time, the company makes three computers with the following characteristics

I need an explanation of how a bin card is done

Greta Grantor made $1 million of taxable gifts in 2009, the only taxable gifts she made prior to this year.  Greta was married on January 2nd of this year to Gerard Gold digger. De

Allocation of Service Department Costs Allocation of Service Department Costs to Production departments ,Service departments are those departments that provide support to prod

1. The bank added another company's deposit to our account. This would be included on the bank reconciliation as a(n). a) addition to the balance per books. b) subtraction from the

Small Steps sells step stools. Their budget information is shown below. selling price: $40 per stool Variable expense:$30 per stool Fixed Expense:$24,000 use the above inform

Stages of Implementation of Zero Based Budgeting 1. Definition of decision package. It is the comprehensive description of the organizations activities or functions.

Q. Issues to consider when making decisions? At activity level A it can be seen from diagram that sales revenue line intersects the total cost line specifying that this is the

A company is evaluating the following lease or buy option.  A four year lease with annual payments of $25,000 payable at the beginning of the year. The tax shield is available a