You have recently joined Aran Limited as a Management Accountant and you have been asked by the Managing Director to create a series of concise briefing notes covering a variety of management accounting concepts, tools and techniques. REQUIREMENT: Draft a memo which outlines how the absorption (otherwise known as the traditional) overhead costing system operates including: (i) Explaining how the two-step allocation method works; (ii) Explaining how to calculate and treat the under and over absorption of overheads. (22 marks) Format and Presentation (3 marks) Total (25 marks)