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Marin Company produces two software products (Cloud-X and Cloud-Y) in two separate departments (A and...

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Accounting

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) $ 74,000 $ 50,400
Depreciation and other fixed costs 54,400 4,000
Total $ 128,400 $ 54,400

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