Marin Company produces two software products ( Cloud - X and Cloud - Y ) in two
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Question:
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:
From To Total Labor Hours
Design Programming Department A Department B
Design
Programming
The costs in the two service departments are as follows:
Design Programming
Labor and materials all variable $ $
Depreciation and other fixed costs
Total $ $
Required:
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.
Related Book For
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
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