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Problems [ LO 7 - 1 , 7 - 3 ] Note regarding rounding errors: Many of the problems in this chapter require a series
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Note regarding rounding errors: Many of the problems in this chapter require a series of calculations. Rounding errors can accumulate and affect totals unless each calculation is carried to a recommended four or more digits after the decimal point. If you are using a calculator, make sure all your calculations are done to or more digits after the decimal. To avoid rounding errors entirely, use a spreadsheet package like Excel to set up and solve these problems.
Departmental Cost Allocation; Outsourcing Marin Company produces two software products CloudX and CloudY in two separate departments A and B These products are highly regarded network maintenance programs. CloudX is used for small networks and CloudY 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 CloudX and department B produces CloudY 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:
tableFromTotableTotalLabor HoursDesignProgramming,Department ADepartment BDesignProgramming
The costs in the two service departments are as follows:
tableDesign,ProgrammingLabor and materials all variable$$
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