Apportioning Administrative Overheads between Production and Sales

sales departments. The reason for the apportionment of overhead
expenses over these departments, recognises the fact that administrative overheads are
incurred for the benefit of both of these departments. Therefore each department should
be charged with the proportionate share of the same. When this method is adopted,
administrative overheads lose their identity and get merged with production and selling
and distribution overheads.
Disadvantages :
(1) It is difficult to find suitable bases of administrative overhead apportionment over
production and sales departments.
(2) Lot of clerical work is involved in apportioning overheads.