Departmental Cost Allocation. 7-34

What is the value of the ending inventory of product A? What is the value of the ending inventory of product B? 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 service. The source and use of the support department time are summarized as follows: The costs in the two service departments are as follows: What are the costs allocated to the two production department from the two service department using (a) the direct method, (b) the step method (design department goes first), and (c) the reciprocal method? The company is considering programming services to DDB Services Inc., for $25 per hour. Should Main do this? Departmental Cost Allocation Logan Products has two production departments __ assembly and finishing. These are supported by two service departments __sourcing (purchasing and handling of raw materials and human resources) and operations (work scheduling, supervision, and inspection) Logan has the following labor hours devoted by each of the service department to the other departments