Q.State, for each of the following Overhead items, whether it would be treated as ALLOCATION or APPORTIONMENT, and if Apportionment, state the most appropriate basis:

The answer to each part turns on one question only — can this exact item be traced wholly to a single department in THIS factory's situation — and part (e) shows that even an item normally apportioned (Power) becomes Allocation the moment it is directly, separately measured.

Each item is tested against the same rule: can it be traced WHOLLY to one specific department? If yes, it is Allocation regardless of what kind of expense it is; if it is genuinely shared and cannot be so traced, it is Apportionment on a chosen basis.

1. Salary of a foreman working exclusively in Machining: incurred solely for one department → Allocation (wholly to Machining).
2. Factory building rent: the whole building, and hence its rent, is shared by every department housed in it → Apportionment, on Floor Area.
3. Depreciation of a specific machine used only by Finishing: even though 'depreciation' is often apportioned (as in Question 2(d) above, where several departments share several machines), THIS particular machine is used by only one department, so its depreciation is fully traceable → Allocation (wholly to Finishing). This is the key lesson: the TYPE of expense (depreciation) does not decide the answer; the actual traceability of THIS specific item does.
4. Canteen expenses for all factory workers: benefits employees across every department → Apportionment, on Number of Employees. …

The most important trap in this question is part (e): students who have learned 'Power is apportioned on Horse Power/kWh' as a fixed rule often apply it here too, missing that separate department-wise metering makes the cost DIRECTLY traceable, which always overrides the us …