Hi I have coursework on overhead analysis, buti'm not sure which basis to apportion the costs by. Could you help me with this ?

Management Accounting Coursework 2 Overhead Analysis You are a trainee management accountant working for a small manufacturing company called Eriksen Ltd, which makes three types of disposable cameras. The X1 is a low-budget model, the X2 is a standard model and the X3 is an advanced model. All products are produced in the same factory in Tottenham. The X1 and X2 models are produced in production department 1 and the X3 is produced in production department 2, which contains more hi-tech equipment to manufacture for the specialist lenses required for the advanced model. There are also two service departments, stores and maintenance, which support the production departments. You have been given the following list of factory costs; 275,000 425,000 1,245,000 2,475,000 1,250,400 525,000 415,000 80,000 595,000 413,,000 365,000 63,000 82,000 131,500 Direct labour - A grade Direct labour - B grade Specialist lenses - X3 model Standard lenses - X1 and X2 models Other direct materials - department 1 Other direct materials - department 2 Quality control Factory supervisors salary Rent Heating and lighting Machine insurance Indirect materials- X3 model Maintenance wages Depreciation of machinery You also acquire the following information about the factory: Floor space (square metres) Number of grade A workers Direct labour hours - grade A workers Number of grade B workers Direct labour hours - grade B workers Number of Inspections Volume (cubic metres) Value of machinery () Requisitions from stores Maintenance calls Machine hours Units produced Dept 1 2,000 70 Dept 2 1,500 30 140,000 60,000 10 15 20,000 30,000 250 6,000 1,350,000 140,000 125 250,000 575,000 300 3,500 4,500,000 150,000 175 40,000 300,000 1 Stores Maintenance 750 250 2,500 1,000 300,000 Management Accounting Coursework 2 Overhead Analysis 2 Management Accounting Coursework 2 Overhead Analysis Requirements Prepare and present: 1. An overhead analysis table, which clearly states the basis you have used to allocate the overhead costs (25 marks) 2. Recommended overhead absorption rates for departments 1 and 2, stating the reasons for your choice (10 marks) 3. The product cost of one unit of X3 (10 marks) Please round figures to the nearest whole number for requirement (a) and to two decimal places for requirements (b) and (c) and (d). The MD is concerned a recession may be on the way following the UK's decision to exit the European Union. He believes the competitors are likely to reduce their prices and has asked you to look at the alternative costing technique of activity based costing (ABC) to see if it may help their position. He has asked you to; 4. Describe the advantages and disadvantages of ABC (10 mark) 5. Assesses whether ABC could be suitable for the company (15 marks) The remaining 30 marks are available for presentation skills and use of PowerPoint. Each of the above requirements must use ONE slide. You will have FIVE minutes to make your presentation. You must submit your presentation in a single Powerpoint file o StudyNet by 6pm on Sunday 12th March 2017. Presentations will take place during the 2 weeks commencing Monday 13 March 2017. 3