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Hi sir,
Sir wy dont we apportion overheads directly to only production departments. Why fir we apportion then reapportion from service. What is the logic behind?
Thanx
Because the service departments are in the factory and do work for the production departments.
Therefore we apportion all factory overheads between all departments, and then reapportion any service department costs on the basis of what work they do for the production departments.Have you watched my free lectures on this? The lectures are a complete free course for Paper F2 and cover everything needed to be able to pass the exam well.
Yeah i have watched ur lectures. My point is that ultimately factory overheads will be charged to production deptts. So why not we charge whole of the factory overheads on first instance to production deptts.
Thanx
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