Required information [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 Design From Design Programming Programming 5,000 Department 1,000 600 Department B 9,000 1,000 Total Labor Hours 15,000 2,000 400 The costs in the two service departments are as follows: Labor and materials (all variable) Depreciation and other fixed costs Total Design $56,000 43,600 $99,600 Programming $39,600 4,000 $43,600 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 are summarized as follows: Design Total Labor From Design Programming Programming Department 5,000 1,000 600 Department 9,000 400 1.000 15,000 2,000 The costs in the two service departments are as follows: Labor and materials (all variable) Depreciation and other fixed costs Total Design $56,000 43,600 Programming $39,600 4,000 $43, 600 $99,600 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 9,000 Department B $ 90,600 Total 99,600 rs S b. Direct Method Step Method (Design Department goes first) The Reciprocal Method (using Solver) Required information (The following information applies to the questions displayed below.) Data Performance, a computer software consulting company, has three major functional areas: computer programming, information systems consulting, and software training. Carol Bingham, a pricing analyst, has been asked to develop total costs for the functional areas. These costs will be used as a guide in pricing a new contract. In computing these costs, Carol is considering three different methods of the departmental allocation approach to allocate overhead costs: the direct method, the step method, and the reciprocal method. She assembled the following data from the two service departments, information systems and facilities: Service Departments Information Systems $82,000 Facilities $38,000 1,800 Budgeted overhead (base) Information Systems (computer hours) Facilities (square feet) Production Departments Information Systems Software Consulting Training Total $186,000 $127,000 $575,000 1,800 4,500 9,000 360 1,080 1,800 Computer Programming $142,000 900 180 180 Required: 1. Using computer usage time as the allocation base for the information systems department and square feet of floor space as the application base for the facilities department, apply overhead from these service departments to the production departments, using these three methods: a. Direct method. b. Step method (both for the information systems department going first and for the facilities department going first). c. Reciprocal method. (Round percentage calculations to 4 decimal places (e.g., 33.3333%). For all requirements, Do not round your intermediate calculations. Round your final answers to nearest whole dollar amount.) Help Budgeted overhead (base) Information Systems (computer hours) Facilities (square feet) Information Systems $82,000 Computer Systems Facilities Programming Consulting $38,000 $102,000 $185,000 1,800 900 1,800 180 360 Software Training $127.000 4,500 1,080 180 Total $575,000 9,000 1.800 Required: 1. Using computer usage time as the allocation base for the information systems department and square feet of floor space as the application base for the facilities department, apply overhead from these service departments to the production departments, using these three methods: a. Direct method. b. Step method (both for the information systems department going first and for the facilities department going first). c. Reciprocal method. (Round percentage calculations to 4 decimal places (e.g., 33.3333%). For all requirements. Do not round your intermediate calculations. Round your final answers to nearest whole dollar amount.) Programming Consulting Training Total a. Direct Method Step Method (Information Systems Goes First) Step Method (Facilities Goes First) Reciprocal method M 8 of 8 Next >