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Marin Company produces two software products ( Cloud - X and Cloud - Y ) in two separate departments ( A and B ) .

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:
From To Total Labor Hours
Design Programming Department A Department B
Design -5,0001,0009,00015,000
Programming 400-6001,0002,000
The costs in the two service departments are as follows:
Design Programming
Labor and materials (all variable) $ 107,000 $ 70,200
Depreciation and other fixed costs 74,2004,000
Total $ 181,200 $ 74,200
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.)
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[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:
The costs in the two service departments are as follows:
Required:
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.)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:
The costs in the two service departments are as follows:
Required:
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.)
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