Process for charging overheads

Question

Write down the process for charging overheads?

Answer 1

Three ways of charging overheads which are illustrate below:

- Primary Apportionment is the initial step in charging sum total overheads to the individual departments.

- Secondary Apportionment is the subsequently step where the overheads of non-production departments are moved to the production departments.

- Absorption is the third step where each and every product or job acquires the loading of the overheads while it is moving throughout the production department. It is also termed as revival of overheads.