MedServices Inc. is divided into two operating departments: Laboratory and Tissue Pathology. The company allocates delivery and accounting costs to each operating department. Delivery costs are allocated on the basis of mumber of samples. Accounting costs are allocated on the basis of the mumber of transactions processed. No effort is made to separate fixed and variable costs; however, only budgeted costs are allocated Allocations for the coming year are based on the following data: Support Departments Accounting Operating Departments Pathology $456,000 Delivery $240,000 Laboratory Overhead $270,000 $345,000 costs Number of 70,200 46,800 samples Transactions 2,000 processed 24,700 13,300 Required to show all calculation steps to 1. Assign the support department costs by using the direct method. 2. Prepare a unit price bid for employee drug test. MedServices, Inc.'s quotation is 17% markup to the related operational cost. Other data may help to create the bid are: each test cup is $5.65, each technician's hourly rate is S24.00. It takes him/her a total of 15 minutes to complete a test