ABC LTD.

OVERHEAD DISTRIBUTION SUMMARY FOR THE PERIOD……..

PARTICULARS BASIS OF TOTAL PRODUCTION DEPTS. SERVICE DEPTS.
APPORTIONMENT
P1 P2 S1 S2
INSURANCE OF VALUE OF STOCK ( 1% 1,400 700 500 100 100
STOCK OF STOCK VALUE)
STORES O/H VALUE OF MATERIALS 2,000 800 600 400 200
(1% OF MATERIAL
COST)
POWER HP OF MACHINERY ( $ 2,000 1,000 500 300 200
10 PER HP)
FACTORY RENT, FLOOR AREA ( $ 1 PER 28,000 10,000 8,000 6,000 4,000
TAXES AND SQ. FT.)
REPAIRS
LIGHTING AND NUMBER OF LIGHT 6,000 4,000 1,000 500 500
HEATING POINTS ( @ $ 10 PER
POINT)
DEP. INSU AND VALUE OF P & M (20%) 56,000 20,000 24,000 8,000 4,000
MACHINE MAINT
SUPERVISION NO. OF WORKERS ( $ 4,000 2,000 1,000 500 500
AND WELFARE 100 PER EMPLOYEE)
TOTAL 99,400 38,500 35,600 15,800 9,500
SERVICE RENDERED BY SERVDICE DEPARTMENTS ARE AS UNDER
SERVICE TOTAL P1 P2 S1 S2
DEPT.
S1 TO 100% 50% 40 10%
%
S2 TO 100% 45% 50 5%
%

PREPARE SECONDARY DISTRIB UTION USING

A. IGNORING METHOD
B. STEP LADDER METHOD
C. REPEATED OR CONTINUOUS DISTRIBUTION METHOD
D. ALGEBRAIC OF SIMULTANEOUS EQUATION METHOD
 ABC LTD.,
SECONDARY DISTRIBUTION SUMMARY
FOR THE PERIOD ---------
IGNORING METHOD

PARTICULARS BASIS TOTAL PRODUCTION DEPT SERVICE DEPT.

P1 P2 S1 S2
O/H AS PER PDS PDS 99,40 38,500 35,600 15.800 9,500
0
RE DISTRIBUTION OF S.D.
O/H
S1 5:4 (15,800)
S2 45 : 50 (9,500)
TOTAL 99,40 NIL NIL
0
 ABC LTD.,
SECONDARY DISTRIBUTION SUMMARY
FOR THE PERIOD ---------
STEP LADDER METHOD

PARTICULARS BASIS TOTAL PRODUCTION DEPT SERVICE DEPT.

P1 P2 S1 S2
O/H AS PER PDS PDS 99,40 38,500 35,600 15.800 9,500
0
RE DISTRIBUTION OF S.D. O/H
S1 5:4:1 7,900 6,320 (15,800) 1,580
S2 45 : 50 (11,080)
TOTAL 99,40 NIL NIL
0
 ABC LTD.,
SECONDARY DISTRIBUTION SUMMARY
FOR THE PERIOD ---------
REPEATED OR CONTINUOUS DISTRIBUTION METHOD

PARTICULARS BASIS TOTAL PRODUCTION DEPT SERVICE DEPT.

P1 P2 S1 S2
O/H AS PER PDS PDS 99,40 38,500 35,600 15.800 9,500
0
RE DISTRIBUTION OF S.D.
O/H
S1 50 : 40 : 10 7,900 6,320 (15,800) 1,580
S2 45 : 50 : 5 4,986 5,540 554 (11,080)
S1 50 : 40 : 10 277 222 (554) 55

TOTAL 99,40 NIL NIL

 0

ABC LTD.,
SECONDARY DISTRIBUTION SUMMARY
FOR THE PERIOD ---------
SIMULTANEOUS EQUATION

PARTICULARS BASI TOTAL PRODUCTION DEPT SERVICE DEPT.

S
P1 P2 S1 S2
O/H AS PER PDS PDS 99,400 38,500 35,600 15.800 9,500
RE DISTRIBUTION OF S.D. O/H
S1
S2
TOTAL 99,400 NIL NIL