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Service Cost Centres
Since no production cost units pass via the service cost centers, it is essential to apportion the service department costs; to the production cost centers so such all production costs involving those for the servicing departments that are absorbed into production. Typical basis for secondary apportionment that is the apportionment of service costs to production departments are specified below as:
Service Department
Possible basis of Apportionment to
Production Cost Centres
Maintenance
Maintenance Labour Hours
Maintenance Wages
Plant value
Stores
Number of Requisitions
Weight of Materials issued
Inspection
Number of production employees per cost centre
Number of Inspection Tickets
Number of Jobs
Production Control
No of Production Employees per cost centre
No of jobs
Power General Generation
Metered Usage
Notional Capacity
Technical Estimate
Personnel Department
No of Employee per department
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