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 $250,000, $400,000, and $200,000, 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 ailocated 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: Used b Allocation Base Building area Employees Equipment value (in thousands) Accounting 30,000 enance Malding Painting 20,000 30,000 90,000 10,000 5 6.00 $12000 s 1750 $ 31200 $162.00 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 $210,000 in direct maternials, $200,000 in direct labor, and $75,000 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 itsein Rank order he allocation as follows. 1 Maintenance 2) Account ng and 3 Ad istration. Do not round inte mediate ca cui to s Ne i e im o nts shout be na cated minus sign. Step Method Painting Maintenance Diract Costs FROM Maintenance Accourting Totals