The following information relates to the production and assembly departments of the Popcorn Manufacturing Company for 1983.

Direct labour Direct materials Machine hours worked Labour hours worked Floor space occupied Number of employees Indirect overheads incurred:

Production

£60000

£90000 IS 000 hr 12000 hr I 600 sq ft 160 Assembly

£45000

£15000 9000 hr 8000 hr 900 sq ft 140 Power for equipment Supervisors salaries Heat and light Indirect materials Miscellaneous production overheads Depreciation on equipment Financial Accounting and Reporting £
36000 9000 6000 3000 6000 10 800

(a) Identify four different bases for the allocation ofindirect overheads to the two departments and explain the relative merits of each base .

(b) Calculate the overheads for each department using each of the four bases identified in (a).