RE-APPORTIONMENT

 Re-apportionment : 

• Up  to the last stage all overheads are allocated and apportioned to all the departments- both production and service departments.
•  Service departments are those departments which do not directly take part in the production of goods or providing services. Such departments provide auxiliary services across the entity and renders services to other cost centres and in some cases to outside parties. 
• Examples of such departments are engineering, quality control and assurance, laboratory, canteen, stores, time office, dispensary etc. The overheads of these departments are to be shared by the production departments since service departments operate primarily for the purpose of providing services to production departments.
•  The process of assigning service department overheads to production departments is called reassignment or re-apportionment. At this stage, all the factory overheads are collect- ed under production departments.