Marin Company produces two software products (Cloud-x and Cloud-r) in two separate departments (A and B)....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Marin Company produces two software products (Cloud-x and Cloud-r) in two separate departments (A and B). Inese products are highly regarded network maintenance programs. Cloud-X is used for small networks and Cloud-Y is used for large networks. Marin is known for the quality of its products and its ability to meet dates promised for software upgrades. Department A produces Cloud-X, and department B produces Cloud-Y. The production departments are supported by two support departments, systems design and programming services. The sources and uses of the support department time are summarized as follows: Total Labor From Design Programming Design 400 Programming 5,000 Department A Department B Hours 1,000 600 9,000 1,000 15,000 2,000 The costs in the two service departments are as follows: Labor and materials (all variable) Depreciation and other fixed costs Total Design $ 56,000 43,600 Programming $ 39,600 4,000 $ 99,600 $ 43,600 Required: 1. Determine the total support costs allocated to each of the producing departments using (a) the direct method, (b) the step method (design department goes first), and (c) the reciprocal method. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) a. Direct Method b. Step Method (Design Department goes first) c. The Reciprocal Method (using Solver) $ Department A 26,310 Department B Total $ 116,890 $ 143,200 $ 0 S 0 Marin Company produces two software products (Cloud-x and Cloud-r) in two separate departments (A and B). Inese products are highly regarded network maintenance programs. Cloud-X is used for small networks and Cloud-Y is used for large networks. Marin is known for the quality of its products and its ability to meet dates promised for software upgrades. Department A produces Cloud-X, and department B produces Cloud-Y. The production departments are supported by two support departments, systems design and programming services. The sources and uses of the support department time are summarized as follows: Total Labor From Design Programming Design 400 Programming 5,000 Department A Department B Hours 1,000 600 9,000 1,000 15,000 2,000 The costs in the two service departments are as follows: Labor and materials (all variable) Depreciation and other fixed costs Total Design $ 56,000 43,600 Programming $ 39,600 4,000 $ 99,600 $ 43,600 Required: 1. Determine the total support costs allocated to each of the producing departments using (a) the direct method, (b) the step method (design department goes first), and (c) the reciprocal method. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) a. Direct Method b. Step Method (Design Department goes first) c. The Reciprocal Method (using Solver) $ Department A 26,310 Department B Total $ 116,890 $ 143,200 $ 0 S 0
Expert Answer:
Answer rating: 100% (QA)
Marin Company Support Cost Allocation We need to determine the total support costs allocated to Departments A and B using three methods a Direct Metho... View the full answer
Related Book For
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
Posted Date:
Students also viewed these accounting questions
-
Safe Dosage Calculations and Descriptive Analysis of Patient Data make a dataset of 10 patients on their anthropometric measures. Columns of the data table must include: patient #, weight (kg), and...
-
Marin Company produces two software products (Cloud-X and Cloud-Y) in two separate departments (A and B). These products are highly regarded network maintenance programs. Cloud-X is used for small...
-
Tanner Company produces two software products (NetA and NetB) in two separate departments (A and B). These products are highly regarded network maintenance programs. NetA is used for small networks...
-
The toroid of FIGURE P29.55 is a coil of wire wrapped around a doughnut-shaped ring (a torus). Toroidal magnetic fields are used to confine fusion plasmas. a. From symmetry, what must be the shape of...
-
Transaction data for McCall Real Estate Agency are presented in E3-8. In E3-8 This information relates to McCall Real Estate Agency. Journalize the transactions. Do not provide explanations. Oct. 1...
-
On 1 May 20X8 Jenny Barnes, who is a retailer, had the following balances in her books: Premises 70,000; Equipment 8,200; Vehicles 5,100; Stock 9,500; Trade debtors 150. Jenny does not keep proper...
-
Question: A supervisor reprimanded an employee for eating in a restaurant when he should have been at work. Later, the employee showed up at the supervisor's office and shot him. Although the...
-
Multiple Choice. Choose the best answer. 1. Which of the following correctly states the role of budgeting in proprietary funds? a. Proprietary fund managers should ensure that a valid appropriation...
-
. (Capital structure analysis) The Karson Transport Company currently has net operating income of $498,000 and pays interest expense of $197,000. The company plans to borrow $1.19 million on which...
-
Alpha Airlines has ordered a new fleet of DC- 717s. At this stage of the contract, Alpha's operations manager must specify the seating configuration on the aircraft that will be used on the...
-
Prove that every finite integral domain is a field.
-
Project Description: The ever-changing world and the development of new technologies have led to the emergence of new types of leadership as well as theories to explain their nature and psychological...
-
How do modern deposit accounts incorporate advanced technological features, such as mobile banking, biometric authentication, and contactless transactions, to enhance customer convenience and...
-
A 120 kg refrigerator, 2.00 m tall and 85.0 cm wide, has its center of mass at its geometrical center. You are attempting to slide it along the floor by pushing horizontally on the side of the...
-
PPO Broadcast media sent out an article and reported that Congresswoman Mary Peters was seen leaving a hotel in the middle of the night with a man that was not her husband. She also tripped and was...
-
McDougan Associates, a U.S.-based investment partnership, borrows 80.000.000 at a time when the exchange rate is $1.3343/. The entire principal is to be repaid in three years, and interest is 6.350%...
-
Fix Manufacturing specifies the quality characteristic of one of its popular products to be 0.500" 0.020. An analysis of company records for the last two years suggests that the average cost for...
-
How do network effects help Facebook fend off smaller social-networking rivals? Could an online retailer doing half as much business compete on an equal footing with Amazon in terms of costs? Explain.
-
Photo Graphic Images, Inc. (PGI), is an international supplier of graphic and photo images that are used in the publishing business and by a variety of firms that need graphic images for their annual...
-
Consider the following information for Huntersville, Inc., for the fi scal year ended December 31. Depreciation expense-Administrative office $ 32,000 Depreciation expense-Plant and equipment 86,000...
-
This assignment deals with the application of a traditional ABC system to the problem of measuring and managing the cost of capacity. As a newly hired accountant for Zen Company, you've been asked to...
-
Record the following details for the month of November 19X7 and extract a trial balance as at 30 November: 19X7 Nov 1 Started with 5,000 in the bank. 3 Bought goods on credit from: T Henriques 160; J...
-
Record the following for the month of January, balance off all the accounts, and then extract a trial balance as at 31 January 19X8: 19X8 Jan 1 Started business with 3,500 cash. 2 Put 2,800 of the...
-
From the following trial balance of B Webb, extracted after one years trading, prepare a trading and profit and loss account for the year ended 31 December 19X6. A balance sheet is not required....
Study smarter with the SolutionInn App