Dixon Robotics manufactures three robot models: the A3B4, the BC11, and the C3PO. Dixon allocates the manufacturing overhead to each model based on machine hours. A large portion of the company's manufacturing overhead costs is incurred by the Maintenance Department. This year, the department anticipates that it will incur $100,000 in total costs. The following estimates pertain to the upcoming year:

Model	Estimated Machine-Hours	Estimated Units of production
A3B4	20,000	6,250
BC11	15,000	5,000
C3PO	5,000	2,500

Ed Smith, Dixon's cost accounntant, suspects that unit costs are being distorted by using a single activity base to allocate Maintaince Department costs to products. Thus, he is considering the implementation of activity-based costing (ABC).

Under the proposed ABC method, the costs of the Maintenance Department would be allocated to the following activity cost pools using the number of work orders as an activity base: (1) the repairs pool and (2) the janitorial pool. Of the 2,000 work orders filed with the Maintence Department each year, approximately 400 relate to repair activities, and 1,600 relate to janitorial activities.

Machinery repiars correlate with the number of production runs of each robot model. Thus, the repairs pool would be allocated to robots based on each model's corresponding number of production runs. Janitorial services correlate with square feet of production space. Thus, the janitorial pool would be allocated to products based on square feet of production devoted to each robot model. The following table provides a summary pf annual production run activity and square footage requirements:

Model	Estimated Number of Production Runs	Estimated Square feet of Production Spaced used
A3B4	50	5,000
BC11	150	10,000
C3PO	200	25,000

Instructions:

A. Calculate the amount of Maintance Department costs that would be allocated to each robot model (on a per-unit basis) using machine-hours as a single activity base.

B. Calculate the amount of Maintance Department costs that would be allocated to each robot model (on a per-unit basis) using the proposed ABC method.

C. Re cost allocations distorted using machne-hours as a single actibity base? Explaing your answer.