Based on the information presented above, you are required to: a) Briefly explain the difference between production departments and service departments. Specify for the manufacturing plant in Amazon City which departments are production departments. and which are service ones. b) List the reasons that the old cost accounting system at Petersen Pneumatic Company may be distorting its product costs. c) Determine the product costs per unit using the old cost accounting system. Show as clearly as possible all the intermediate steps for allocations, including departmental cost driver (allocation base) rates and a breakdown of product costs into each of their components. d) Determine the product costs per unit using the new cost accounting system. Show as clearly as possible all the intermediate steps, including the cost driver rates, amounts in the five new cost pools, as well as a breakdown of product costs into each of their components. e) Discuss, in great detail, to what extent the new cost accounting system at Petersen Pneumatic Company can be characterized as an ABC system. Analyze the profitability of the three products. What insight is provided by the new profitability analysis? What should Petersen Pneumatic Company do to enhance the profitability of its Amazon City plant? Mike Meservy is a veteran production manager and Shannon Corinth is a marketing manager with considerable experience as a salesperson. Discuss how each of them is likely to react to your analysis and recommendations. Explain how their expected reactions may affect the way you will present your recommendations. Assume now that Petersen Pneumatic Company has unveiled the idle (free, unused) capacity at its manufacturing plant in Amazon City with respect to the number of setups to be performed. Based on new estimates, the total capacity available is 345 setups. h) Discuss how and why this piece of information affects your calculations in part d). Determine the revised product costs per unit taking information about the idle capacity into account