Question

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: 

 The costs in the two service departments are as follows:

 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.)

Answer 1

Answers:

	Department A	Department B	Total
Direct Method	47,100	214,900	262,000.00
Step Method	$ 64,150	$        197,850	262,000.00
Reciprocal Method	$ 58,730	$        203,270	262,000.00

Calculation:

1. Direct Method:

2. Step Method

3.Reciprocal Method