Model, Inc., produces model automobiles made from metal. Itoperates two production departments, Molding and Painting, and hasthree service departments, Administration, Accounting, andMaintenance. The accumulated costs in the three service departmentswere $255,000, $405,000, and $217,000, respectively. Management isconcerned that the costs of its service departments are getting toohigh. In particular, managers would like to keep the costs ofservice departments under $3.50 per unit on average. You have beenasked to allocate service department costs to the two productiondepartments and compute the unit costs. The company decided that Administration costs should beallocated on the basis of square footage used by each productionand service department. Accounting costs are allocated on the basisof number of employees. Maintenance costs are allocated on thebasis of the dollar value of the equipment in each department. Theuse of each base by all departments during the current periodfollows:

Direct costs of the Molding Department included $235,000 indirect materials, $332,500 in direct labor, and $115,000 inoverhead. The Painting Departments direct costs consisted of$247,000 in direct materials, $183,000 in direct labor, and $67,500in overhead.

Required: a. Using the step method, determine theallocated costs and the total costs in each of the two producingdepartments. Ignore self-usage (for example, ignore work done byAdministration for itself). Rank order the allocation as follows:(1) Maintenance, (2) Accounting, and (3) Administration.(Donot round intermediate calculations. Negativeamounts should be indicated by a minussign.) b. Assume that 100,000 units were processedthrough these two departments. What is the unit cost for the sum ofdirect materials, direct labor, and overhead (1) for Molding, (2)for Painting, and (3) in total? (Do notround intermediate calculations. Round youranswers to 2 decimal places.) c. (1) Compute the cost per unit for the servicedepartment costs allocated to the production departments.( . . .