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} p23 As per primary 38,000 16,000 10,000 12,000 Departmental summary Service Departments : Stores No. of Stores Requisitioned 2,000 1,000 667 333 30:20:10 Timekeeping No. of Employees 40 : 30 : 20 3,000 1,333 1,000 667 Maintenance Machine Hours 1,000 500 300 200 25 : 15 : 10 Power Horse Power 2,000 625 625 750 5:5:6 Welfare No. of Employees 1,000 445 333 222 40:30:20 Supervision No. of Employees 2,000 889 667 444 40 : 30: 20 Total 49,000 20.792 13,592 14,616 (2) Step Method: Under this method the cost of most serviceable department is first distributed to production departments and other service departments. Thereafter, the next service department is distributed and later the last service department until the cost of all the service departments are redistributed to the production department. Illustration: 4 A manufacturing company has two production departments A and B and three Service Departments -- Timekeeping, Stores and Maintenance. The departmental summary showed the following expenses for Dec. 2003. Production Departments: Rs. 32,000 B 10,000 Service Departments: Timekeeping 8.000 Stores 10,000 Maintenance 6,000 Total Overhead Expenses 66,000 412 A Textbook of Financial Cost and Management Accounting The following information about departments is available and is used as a basis for distribution : Particular Production Service Departments Departments A B Timekeeping Mai hance No. of Employees 20 15 10 8 No. of Stores Requisitions 12 10 Machine Hours 1200 800 You are required to apportion these costs to production departments