Service Cost Centres
Since no production cost units pass via the service cost centers, it is essential to apportion the service department costs; to the production cost centers so such all production costs involving those for the servicing departments that are absorbed into production. Typical basis for secondary apportionment that is the apportionment of service costs to production departments are specified below as:
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Service Department
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Possible basis of Apportionment to
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Production Cost Centres
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Maintenance
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Maintenance Labour Hours
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Maintenance Wages
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Plant value
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Stores
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Number of Requisitions
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Weight of Materials issued
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Inspection
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Number of production employees per cost centre
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Number of Inspection Tickets
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Number of Jobs
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Production Control
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No of Production Employees per cost centre
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No of jobs
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Power General Generation
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Metered Usage
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Notional Capacity
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Technical Estimate
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Personnel Department
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No of Employee per department
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