Methods of Re - apportionment ( Direct redistribution methord )

What is apportionment? 

Apportionment refers to distribution of overheads among or between other departments. If there is any overhead expense which is related to more than one department are required to be distributed between or among other departments.

What is re-apportionment? 

Now here service departments do not directly contribute in the production of goods or job. Therefore it is necessary to assign overheads of Service Department to Production department.

So the process of assigning Service Department overheads to production departments is called Re-apportionment or Reassignment.

At this stage all the overheads of factory are collected under production department.

Direct Redistribution Methord 

Under this methord the cost is apportioned over production departments only not to service departments and also ignoring the services rendered by one service department to the other. 

It comes under secondary distribution.