Help Save & Exit Submi Check my work Required information Problem 7-34 Departmental Cost Allocation; Outsourcing (LO 7-1, 7-3] [The following information applies to the questions displayed below.) 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: To Total Labor From Design Programming Department A Department B 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: Labor and materials (all variable) Depreciation and other fixed costs Total Design $ 68,000 50,800 $118,800 Programming $46,800 4,000 $50,800 Part 1 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 answer to nearest whole dollar amount.) Department A Department B Total a. 0 b. Direct Method Step Method (Design Department goes first) The Reciprocal Method (using Solver) $ $ $ 0 C. 0 Problem 7-38 Departmental Cost Allocation (LO 7-3) Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June: Service Departments Maintenance Utilities $216,000 $ 654,000 5 Overhead costs incurred Service provided to departments Maintenance Utilities Producing-A Producing-8 Totals 109 20 70 1009 55 100% Required: What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the direct method, (2) the step method (maintenance department first), and (3) the reciprocal method? (Round percentage calculations to 4 decimal places (0.9., 33.3333%), do not round intermediate calculations and round your final answers to the nearest dollar amount.) Producing Department A Producing Department B Total Producing Department Cost 0 $ $ $ 1. The direct method 2. The step method 3. The reciprocal method 0 0