Assignment Question: Style Ltd manufactures various types of "hairdryers". Two of its latest products on the market are the "GEN" and the "MUK". In order to remain competitive the business is looking at expanding its products in the next 12 months. The business hopes to not only expand on its hair product selection but to also look at offering home insurance to its customers. The company currently uses a traditional costing system and allocates overhead costs based on an estimated 83,200 direct labour hours. The following cost information has been used as a basis for pricing decisions over the past year. The company has produced a total of 145,000 units, 60% are of the GEN and 40% are of the MUK. The recent cost report for the business shows that the ratio of prime costs to manufacturing overhead cost is above 1:3. The new Management Accountant Ms Kita is considering the use of Activity Based Costing to apply overhead and has collected some data (see below) but requires your assistance: Note: (where necessary round off answer to 2 decimal places). ALL workings must be shown for each part. SECTION A Requirements, to be completed in EXCEL. A.Given the first paragraph sets the scene surrounding the industry the company fits into and the products it manufactures, you now need to think about what type of activities would be involved in making these products and what drives these activities to occur. Complete the shaded sections of the table above. B. Using the traditional costing system, calculate the company's predetermined overhead rate. C. Calculate the total product cost per unit for both products (GEN and MUK) using the traditional overhead allocation rate calculated in part (b). SECTION A Requirements, to be completed in EXCEL. A.Given the first paragraph sets the scene surrounding the industry the company fits into and the products it manufactures, you now need to think about what type of activities would be involved in making these products and what drives these activities to occur. Complete the shaded sections of the table above. B. Using the traditional costing system, calculate the company's predetermined overhead rate. C. Calculate the total product cost per unit for both products (GEN and MUK) using the traditional overhead allocation rate calculated in part (b). D. Calculate the overhead activity rate for each activity centre using the Activity Based Costing (ABC) approach E. Using an Activity Based Costing (ABC) approach calculate the total product costs of one unit of GEN and one unit of MUK. F. Calculate the operating profit per unit for the GEN and MUK under, 1. The traditional costing system and 2 . The ABC system SECTION B Requirements, to be completed in Microsoft word document. G. Explain the activities and the cost drivers you selected in part A of Section A. Explain, why you feel they are appropriate for this business? H. Examining the figures you calculated in section A (Part C \& Part E), Discuss why the unit cost for the GEN \& the MUK are different under the two techniques used. I. Explain to the management accountant whether this business should or should not move towards an ABC system. J. Would ABC be an appropriate tool to analyse non-manufacturing cost? Discuss. Students must use the information given in this scenario to help with discussion). Assignment Instructions: SECTION A: Parts A to F are calculative questions which are to be completed in excel. Excel is commonly used in the workforce to streamline and conveniently store and calculate data. Even though only a basic level of excel skills will be examined in this assignment students are encouraged to explore beyond the basic level