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in the above question asked how will i find out the insurance of building data in overhead allocation and apportionment of all other departments.

Question

in the above question asked how will i find out the insurance of building data in overhead allocation and apportionment of all other departments.

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Solution

To find out the insurance of building data in overhead allocation and apportionment of all other departments, follow these steps:

  1. Identify the Total Insurance Cost: The first step is to identify the total insurance cost of the building. This information can usually be found in the financial statements or insurance documents of the company.

  2. Identify the Total Overhead Costs: The next step is to identify the total overhead costs of the company. This includes all indirect costs such as rent, utilities, and salaries. This information can also be found in the financial statements of the company.

  3. Calculate the Proportion of Insurance Cost: Divide the total insurance cost by the total overhead costs. This will give you the proportion of the insurance cost in relation to all overhead costs.

  4. Allocate the Insurance Cost: Multiply the proportion of insurance cost by the total overhead costs of each department. This will give you the insurance cost allocated to each department.

  5. Apportion the Insurance Cost: Finally, divide the insurance cost allocated to each department by the total insurance cost. This will give you the apportionment of the insurance cost for each department.

Remember, the exact method of allocation and apportionment can vary depending on the company's accounting policies and practices. Always refer to the company's specific guidelines when performing these calculations.

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