Overhead apportionment and re-apportionment Carrot LLC has the following information regarding it costs: Overhead cost Indirect labor Rent and rates Canteen Insurance Additional information: Floor area Number of employees Prod. Dep. A Prod. Dep. Service Service Total B C D 10,000 20,000 5,000 7,000 42,000 40,000 10,000 5,000 97,000 + 9,000 50 3,000 30 1,500 15 1,500 5 15,000 100 + 500,000 300,000 100,000 100,000 1,000,000 Value of machinery For direct methods: Service C: Percentage of time given to other 70% 30% departments Service D: Percentage of time given to other departments 60% 40% For step-down methods: Service C: Percentage of time given to other 70% 30% departments Service D: Percentage of time given to other 50% 40% 10% departments For reciprocal method: Service C: Percentage of time given to other 60% 20% 20% departments Service D: Percentage of time given to other departments 50% 40% 10% Required: Apportion overhead expenses on production and serviced departments 10 Reapportion service department costs to production departments using Direct, step-down and reciprocal methods. Calculate the total overhead cost of production departments. Explore Overheads