$7-34$ Departmental Cost Allocation; Outsourcing 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 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:

$\backslash$table$[[,$To$,],[$From$,$Design,Programming,Department A$,$Department B$,$Total Labor Hours$],[$Design$,-,5,000,1,000,9,000,15,000],[$Programming$,400,-,600,1,000,2,000]]$

The costs in the two service departments are as follows:

$\backslash$table$[[,$Design,Programming$],[$Labor and materials $($all variable$),$$$50,000,$$$36,000$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.

The company is considering outsourcing programming services to DDB Services Inc. for $$25$ per hour. Should Marin do this? USE EXCEL