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 - 5,000 1,000 9,000 15,000 Programming 400 - 600 1,000 2,000
The costs in the two service departments are as follows:
Design Programming Labor and materials (all variable) $ 86,000 $ 57,600 Depreciation and other fixed costs 61,600 4,000 Total $ 147,600 $ 61,600 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.)
Recently Asked Questions
- How are freedom and liberation similar and how are they different?
- What are some of the problems that scientists faced when attempting to extract DNA from 65 million year old fossils?
- Please help me with homework ..but I need it to be done as a narrative so I can better understand it. Describe a shut-down decision your company has made.