Parts 2 and 3 please, thank-you!

Problem 2: Peabody Manufacturing Co. (Service Department Costs) The production departments at Peabody Manufacturing Company are Fabrication and Finishing. The two service departments are Maintenance and General Factory Administration. Management has decided to allocate maintenance costs on the basis of the area (in square feet) in each department, and general factory administration costs on the basis of the number of direct labor hours in each department. Cost and other data for the production and service departments of Peabody Manufacturing Company are as follows: Administration Maintenance Fabrication Area Occupied (sq. ft.) 4,000 8,000 20,000 Direct Labor Hours 20,000 40,000 60,000 Total costs $500,000 $650,000 $1,250,000 Finishing 16,000 100,000 $1,750,000 Required: a) Using the direct method, determine the amount of service department costs allocated to each of the two production departments. (2 points) b) Using the step-down method, determine the amount of service department costs allocated to each of the two production departments. Allocate the costs of the Maintenance department first, then the General Factory Administration department. (2 points) c) Write the equations that you would use to determine the cost of each service department under the reciprocal (matrix) method. Use the following definitions in constructing your equations: Let A = Total cost of the Administration Department; and M = Total cost of the Maintenance Department. (2 points) A B D E F G . 1 Nm Administration 4,000 20,000 $500,000 Area Occupied (sq. ft.) Direct Labor Hours Total costs Maintenance 8,000 40,000 $650,000 Fabrication 20,000 60,000 $1,250,000 Finishing 16,000 100,000 $1,750,000 4 5 6 7 Costs Allocated to Fabrication Finishing 8 a) Costs to Allocate Cost Rate Total 9 10 Direct method Administration Maintenance Total Total service costs allocated to prodn depts 11 12 13 14 b) Step Down Method Costs Allocated to Administration Fabrication 15 Costs to Allocate Cost Rate Finishing Total 16 17 18 Maintenance Administration Total Total service costs allocated to prodn depts 19 20 Equations for the reciprocal method 21 c) 22 Eqn 1 23 Eqn2 24 25 Proportion of Maintenance used by Administration Proportion of Administration used by Maintenance 26