Refer to the data in Problem 5-15.

1. Allocate the costs of the service departments using the step-down method.

2. Using the results of requirement 1, compute the cost per direct-labour hour in the Mechanical Instruments department and the cost per component in the Electronic Instruments department.

3. Using the results of requirement 2, compute the cost per unit of product for instruments M1, M2, El, and E2.