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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
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 Department Department Labor Hours 9,00015,000 1,000 2,000 From Design Programming Design Programming 5,000 1,000 600 400 The costs in the two service departments are as follows: Design Programming Labor and materials (all variable) Depreciation and other fixed costs $107,000 74,200 $181,200 $70,200 4,000 $74,200 Total 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 doller amount.) Department A Department BTotal a. Direct Method b. Step Method (Design Department goes first) c. The Reciprocal Method (using Solver)
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