Q.The same factory as in the previous question (three production departments A, B and C, and one service department D) also incurred, during the same period: Insurance on Stock ₹2,000, and Employer's Contribution to Provident Fund and ESI ₹5,000. The relevant data is: Value of Stock held (₹): A 40,000; B 30,000; C 20,000; D 10,000 (Total 1,00,000)
Direct Wages (₹): A 50,000; B 30,000; C 15,000; D 5,000 (Total 1,00,000) Apportion both Overhead items among the four departments on the appropriate basis, and prepare a short Primary Distribution Summary for these two items.

Insurance on Stock naturally follows the value of stock each department holds, while the employer's PF/ESI contribution naturally follows the wages it is legally calculated on — two different bases, even though both departments' underlying totals happen to be the same ₹1,00,000.

Insurance on Stock ₹2,000 — apportioned on Value of Stock held, ratio 40,000:30,000:20,000:10,000, which simplifies to 4:3:2:1 (dividing each by 10,000), of a ₹1,00,000 total:

A = 2,000 × 40,000/1,00,000 = ₹800; B = 2,000 × 30,000/1,00,000 = ₹600; C = 2,000 × 20,000/1,00,000 = ₹400; D = 2,000 × 10,000/1,00,000 = ₹200.

Employer's Contribution to PF and ESI ₹5,000 — apportioned on Direct Wages, ratio 50,000:30,000:15,000:5,000, which simplifies to 10:6:3:1 (dividing each by 5,000), of a ₹1,00,000 total:

A = 5,000 × 50,000/1,00,000 = ₹2,500; B = 5,000 × 30,000/1,00,000 = ₹1,500; C = 5,000 × 15,000/1,00,000 = ₹750; D = 5,000 × 5,000/1,00,000 = ₹250.

Because both bases in this question total the identical ₹1,00,000, a common shortcut error is to assume the two items must therefore split in the SAME ratio across departments — they do not, since Value of Stock (4:3:2:1) and Direct Wages (10:6:3:1) are different ratios; always compute ea …