Methods or Re-apportionment or Re-distribution The following are the important methods of re-distribution of service department overheads to production department (4) Direct Re-distribution Method (5) Step Distribution Method (6) Reciprocal Service Method this method further grouped into: (a) Repeated Distribution Method (b) Simultaneous Equiation Method (c) Trial and Error Method (1) Direct Re-distribution Method: Under this method, the cost of service department is directed to re-distribution to the production departments without considering the services rendered by one service department to another service department. Illustration: 3 Ramesh Ltd. has three production departments A, Band C and six service departments. The following figures are extracted from the records of the company: Production Departments Rs.16.000 B Rs. 10,000 Rs 12.000 Total Rs. 38.000 S9 Service Departments Stores Rs.2.000 Timekeeping Rs. 3,000 Maintenance Rs. 1,000 Power Rs. 2,000 Walfare Rs. 1,000 Supervision Rs. 2,000 Rs.49,000 The Other information available in respect of the production departments Total Particulars Production Departments No. of Employees No. of Stores Requisition Horse Power of Machines Machine Hours A 40 30 500 2500 B 30 20 500 1500 20 10 600 1000 You are required to apportion the costs of various service departments to production departments