Académique Documents
Professionnel Documents
Culture Documents
Apportionment and
Absorption
•Overhead expenses
•Overhead Cost
•Overhead Charges
•Overhead expenditure
•On cost
•Supplementary costs
•Non-productive costs
•Burden Costs
•Loading Costs
•Indirect Cost
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OVERHEAD
1 CLASSIFICATION
2 CODIFICATION
3 COLLECTION
Overhead
Classificati
on
Element Controllabil
s ity
P1 P2 P3 S1 S1
P1 P2 P3 S1 S1
P1 P2 P3 S1 S1
Personnel
Tool Room Departme Stores
nt
Boiler Time-
House Keeping Transport
Specific Common
Costs Costs
üFloor Area
üNumber Of Employees
üMachine Hours
üLight Points
üKilowatt Hours
üTechnical Analysis
No. Of
Welfare Expenses, time-Keeping Employee
,pay-roll
Office, Canteen, Recreation, s
Supervision
Machine
Repairs & Maintenance of Plant
& Hours
Machinery
Light Points
Or Electricity Charges
Kilowatt
Hours
Horse
Motive Power
Power Expenses
Value or
Weight
of Store Keeping
Materials Expenses
Truck
Mileage
Tonnage
Transport Service
Truck Hours Expenses
No. Of
Efficiency
Ability To Pay Principle
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üQuick
Check
Identify the Basis for following
Overheads
Rent üFloor Area
Plant Repairs üValue of Plant
Power üMachine
Depreciation of Hours/HP/VM
Building üValue Of Building
Building Repairs üValue Of Building
Insurance Of Building üFloor Area
Fire Insurance of üValue Of Stock
Stock üNo. Of Light Points
Lighting Expenses üNo. Of Employees
Supervision üKilowatt/Value of
Power Plant
ESI üDirect Wages
Employer’s Cont. to üDirect Wages
PF üNo. Of
Amenities To Staff Employees/Wages
Repeated
Distribution
Method
Algebraic
Simultaneous
Equation
Method
07/09/09 Chandrakant@SOM,KIIT University 30
Reciprocal Services
Methods
Trial & Error
Method
% Hourly
Methods Rate
Production Methods
Unit % Direct DL Hour
Materials
Method
Method
% Direct
Rate
Wages Machine
Hour
Methods Of Overhead
Absorption
Production
Unit OHAR=POHEs for the
period
Method
Method
No. Of Units Of
%
Methods
% Direct
Materials
OHAR=POHEs
Period
For the
Cost of Direct
Materials
%
Methods
% Direct
OHAR=POHEs
Period
For the
%
Methods
% Prime Cost
OHAR=POHEs
Period
For the
Prime Cost
Hourly
Rates
Machine
Hour
OHAR= POHEs for the period
No. Of Machine Hours
Rate