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Model, Inc., produces model automobiles made from metal. It operates two production departments, Molding and Painting, and has three service departments, Administration, Accounting, and Maintenance. The accumulated costs in the three service departments were $261,000, $408,000, and $194,000, respectively. Management is concerned that the costs of its service 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 service 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 allocated 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 departments during the current period follows se Allocation Base Building area Employees Equipment value (in thousands) Molding Painting 54,000 432,000 72,000 69 $16.50 228.00 S 114.00 Administration 16,000 42,000 23 46 92 $ 57.00 $171.00 Direct costs of the Molding Department included $230,000 in direct materials, $335,000 in direct labor, and $120,000 in overhead. The Painting Department's direct costs consisted of $242,000 in direct materials, $158,000 in direct labor, and $77,500 in overhead Required a. Using the step method, determine the allocated costs and the total costs in each of the two producing departments. Ignore self-usage (for example, ignore work done by Administration for itself). Rank order the allocation as follows: (1) Maintenance, (2) Accounting, and (3) Administration. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.) MODEL, INC. Step Method To Maintenance AccountingAdministration Molding Painting Direct Costs194,000 S 408,000 261,000 685,000477,500 FROM Maintenance Accounting Administration Totals (194,000) 408.000 261,000S 685,000 477,500