All applicable Problems are included in Connect. Method with Three Service Departments roduces model automobiles made from metal. It operates two production Model, Inc., Molding and Painting, and has three service departments, Administratic Accounting, and Maintenance. The accumulated costs in the three service departments were d $200,000, respectively. Management is concerned that the costs of its ice departments are getting too high. In particular, managers would like to keep the costs of service departments under $3.50 per unit on average. You have been asked to allocate ser- vice department costs to the two production departments and compute the unit costs The company decided that Administration costs should be allocated on the basis of square footage used by each production and service department. Accounting costs are allo- cated on the basis of number of employees. Maintenance costs are allocated on the basis of the dollar value of the equipment in each department. The use of each base by all depart- ments during the current period follows: Used by Allocation Base Administration Accounting Maintenance Molding Painting 30,000 Building area.. . . 10,000 Employees Equipment value 20,000 12 360,000 90,000 100 10 70 $120.00 $1750 $312.00 $162.00 in thousands) $6.00 Direct costs of the Molding Department included $237,500 in direct materials, $337,.500 in direct labor, and $112,500 in overhead. The Painting Department's direct costs consisted of UM) in direct materials, S200.000 in direct labor, and $75,000 in overhead. Using the step method, determine the allocated costs and the total costs in each of the wo producing departments. Ignore self-usage (for example, ignore work done by Admin- stration for itself). Rank order the allocation as follows: (1) Maintenance, (2) Account- ing, and (3) Administration Required t cost for the sum of direct materials, direct labor, and overhead (1) for Moldin 2) for Painting, and (3) in total? Assume that 100,000 units were processed through these two departments What is th uni der ost per unit for the service department costs allocated to the prod ment costs below $3.50 per unit? c Computet ping service depart- ents. Did th e company meet management's standards of kee