Kaminsky Ltd manufactures belts and braces. The firm is organised into five departments. These are belt-making, braces-making, and three service departments - maintenance, warehousing and administration. Direct costs are accumulated for each department. Factory-wide indirect costs (which are fixed for all production levels within the present capacity limits) are apportioned to departments on the basis of the percentage of floor-space occupied. Service department costs are apportioned on the basis of estimated usage, measured as the percentage of the labour hours operated in the service department utilized by the user department.