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: From Design Programming 5,000 400 Labor and materials (all variable) Depreciation and other fixed costs Total To Design Programming The costs in the two service departments are as follows: Department A Department B 1,000 9,000 600 1,000 Direct Method Step Method (Design Department goes first) The Reciprocal Method (using Solver) Design $ 86,000 61,600 $ 147,600 Programming $ 57,600 4,000 $ 61,600 equired: Determine the total support costs allocated to each of the producing departments using (a) the direct method, (b) the step ethod (design department goes first), and (c) the reciprocal method. (Do not round intermediate calculations. Round your final nswers to nearest whole dollar amount.) Department A Department B $ $ $ Total Labor Hours 15,000 2,000 Total 0 0 0
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: From Design Programming 5,000 400 Labor and materials (all variable) Depreciation and other fixed costs Total To Design Programming The costs in the two service departments are as follows: Department A Department B 1,000 9,000 600 1,000 Direct Method Step Method (Design Department goes first) The Reciprocal Method (using Solver) Design $ 86,000 61,600 $ 147,600 Programming $ 57,600 4,000 $ 61,600 equired: Determine the total support costs allocated to each of the producing departments using (a) the direct method, (b) the step ethod (design department goes first), and (c) the reciprocal method. (Do not round intermediate calculations. Round your final nswers to nearest whole dollar amount.) Department A Department B $ $ $ Total Labor Hours 15,000 2,000 Total 0 0 0
Accounting Information Systems
10th Edition
ISBN:9781337619202
Author:Hall, James A.
Publisher:Hall, James A.
Chapter16: Auditing It Controls Part Iii: Systems Development, Program Changes, And Application Auditing
Section: Chapter Questions
Problem 3P
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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:
From
Design Programming
5,000
400
Design
Programming
The costs in the two service departments are as follows:
Labor and materials (all variable)
Depreciation and other fixed costs
Total
To
Department A Department B
1,000
600
a. Direct Method
b. Step Method (Design Department goes first)
c. The Reciprocal Method (using Solver)
Design
$ 86,000
61,600
$ 147,600
Department A
9,000
1,000
Programming
$ 57,600
4,000
$ 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
answers to nearest whole dollar amount.)
Department B
$
$
$
Total
Labor
Hours
Total
15,000
2,000
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe50581f4-db0c-482d-80e6-cc4d6bddecca%2F7613d8e7-7eb4-4e46-b87f-e548fc2b7e6d%2F1a65ql5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
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:
From
Design Programming
5,000
400
Design
Programming
The costs in the two service departments are as follows:
Labor and materials (all variable)
Depreciation and other fixed costs
Total
To
Department A Department B
1,000
600
a. Direct Method
b. Step Method (Design Department goes first)
c. The Reciprocal Method (using Solver)
Design
$ 86,000
61,600
$ 147,600
Department A
9,000
1,000
Programming
$ 57,600
4,000
$ 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
answers to nearest whole dollar amount.)
Department B
$
$
$
Total
Labor
Hours
Total
15,000
2,000
0
0
0
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