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after careful survey for apportionment of charge for different service functions. This method is particularly used when it is difficult to select a suitable basis for apportionment. For example the works manager's salary may be apportioned on the basis of time and attention given by him to different cost centres or the charge for services of cost accounting department may be apportioned to different production departments on the basis of number of workers employed in each department etc. On the basis of the above methods, following can be taken as reasonable basis for apportionment of overheads of services departments over different production departments Service Department Costs Actual of Apportionment Maintenance department Actual services utilised (if records are maintained) or hours worked for each department Payroll or Time-keeping Department Direct labour hours. Machine hours. Number of employees Personnel department Rate of labour tumover, Number of employees Store-keeping department Number of requisitions. Quantity or value of materials purchased Purchase department Number of purchase orders, Value of materials purchased. Welfare department Number of employees. Illustration 1: Following figures have been extracted from the accounts of a manufacturing concern for the month of December, 1994: Indirect Materials: Rs. Production Deptt. X 950 Production Deptt. Y 1,200 Production Deptt. z 200 Maintenance Deptt. P 1.500 Stores Deptt. e 400 Indirect Wages: Production Deptt. X 900 Production Deptt. Y 1.100 Production Deptt. Z 300 Overheads-Distribution Maintenance Deptt. 1,000 Stores Deptt. 650 Power and Light 6,000 Rent and Rates 2.800 Insurance on assets 1.000 Meal Charges 3,000 Depreciation @ 6% on capital value of assets. From the following additional information, calculate the share of overheads of each Production Department: Production Deptts Service Deptts Z Item Y P 3.000 1.000 4,000 1,00,000 4,000 1.20,000 2.000 60.000 80.000 40.000 4.000 4,400 1.500 500 Area (sq. feet) Capital value of assets (Rs.) Kilowatt hours Number of employees Direct labour hours Number of material requisitions 90 120 1.600 30 2,200 40 20 3,200 3.600 900 600 500)