Give answer 12-45 only

12-45 Direct Method for Service Department Allocation Kazuo Piano Company has two producing departments, traditional pianos and electronic pianos. In addition, there are two service departments, building services and materials receiving and handling. The company purchases a variety of component parts from which the departments assembic pianos for sale in domestic and international markets. The electronic pianos division is highly automated. The manufacturing costs depend primarily on the number of subcomponents in each piano. In contrast, the traditional pianos division relies primarily on a large labor force to hand-assemble pianos. Its costs depend on direct-labor hours. The costs of building services depend primarily on the square footage occupied. The costs of materials receiving and handling depend primarily on the total number of components handled. Pianos MI and M2 are produced in the traditional pianos department, and El and E2 are produced in the electronic pianos department. Data about these products follow: Direct. Number of Direct Materials Cost Components Labor Hours MI $740 110 3.0 M2 860 90 EL 630 100 15 E2 910 200 1.0 6,0 Budget figures for 20x7 include the following: Building Service $1,500,000 Materials Receiving and Handling $1,200,000 Traditional Pianos $6,800,000 Electronic Pianos $5,480,000 5.000 Direct department costs (excluding direct materials cost) Square footage occupied Number of final pianos produced Average number of components per piano Direct-labor hours 50,000 8.000 100 30,000 25,000 10,000 160 8,000 HAL 1. Allocate the costs of the service departments using the direct method. 2. Using the results of number 1, compute the cost per direct-labour hour in the traditional pianos department and the cost per component in the electronic pianos department. 3. Using the results of number 2, compute the cost per unit of product for pianos M1. M2. El and E2. 12.46 Step Down Method for Service Department Allocation