Apportioning overhead expenses over various departments and reapportioning

After the
allocable overheads are related to the departments, expenses incurred for several
departments have to be apportioned over each department, e.g. rent, power, lighting,
insurance and depreciation. For distributing these overheads over different departments
benefiting thereby, it is necessary at first to determine the proportion of benefit received
by each department and then distribute the total expenditure proportionately on that basis.