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:

FromToTotal Labor HoursDesignProgrammingDepartment ADepartment BDesign$-5,0001,0009,00015,000$Programming$400-6001,0002,000$

The costs in the two service departments are as follows:

$$DesignProgrammingLabor and materials $($all variable$)$$ $71,000$$ $48,600$Depreciation and other fixed costs$52,6004,000$Total$ $123,600$$ $52,600$

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.

Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.

Required information

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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.

Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.