Q.What is secondary distribution of overhead?

Secondary distribution = re-apportioning service-department overhead onto production departments. Overhead distribution has two stages: - Primary distribution — all overheads are allocated and apportioned over all departments, production and service. - Secondary distribution — the overhead collected in the service departments (stores, maintenance, canteen, etc.), which do not make the product, is re-apportioned to the production departments on suitable bases. This is necessary because products pass only through production departments, so service-department cost must ultimately be charged there befor …