RE-APPORTIONMENT OF OVERHEADS (Redistribution of overheads of service departments to production departments: SECONDARY DISTRIBUTION OF OVERHEADS) The costs of service department are borne by the production departments. This process of redistribution of the cost of the service department to the production department is known as “SECONDARY DISTRIBUTION OF OVERHEADS.” Under secondary distribution, the service department expenses are transferred to the production department only. Re-apportionment of overheads is done with the following methods: 1. Repeated distribution method 2. Simultaneous equation method

1. Dr. Shabnam Gurung 1
Re-APPORTIONMENT OF OVERHEADS
(Secondary distribution of overheads)

2. Dr. Shabnam Gurung 2
The costs of service department are borne by
the production departments. This process of
redistribution of the cost of the service
department to the production department is
known as “SECONDARY DISTRIBUTION
OF OVERHEADS.”

3. Dr. Shabnam Gurung 3
Under secondary distribution the service
department expenses are transferred to
the production department only.

4. Dr. Shabnam Gurung 4
Methods of Re-
apportionment of
Service Department
Overhead Cots
Re-apportionment only
to Production Dept.
Re-apportionment only
to Production and other
service departments
Non-Reciprocal
( When service dept.
are not interdependent)
Reciprocal
( When service dept. are
mutually dependent)

5. Dr. Shabnam Gurung 5
Methods of Re-
apportionment of
Service Department
Overhead Cots
Re-apportionment
only to Production
Dept.
Re-apportionment
only to Production
and other service
departments
Non-Reciprocal
Reciprocal
Repeated
Distribution Method
Simultaneous
Equations Method
Trial and Error
Method

6. Dr. Shabnam Gurung 6