Marin Company produces two software products (Cloud-X andCloud-Y) in two separate departments (A and B). These products arehighly regarded network maintenance programs. Cloud-X is used forsmall networks and Cloud-Y is used for large networks. Marin isknown for the quality of its products and its ability to meet datespromised for software upgrades. Department A produces Cloud-X, anddepartment B produces Cloud-Y. The production departments aresupported by two support departments, systems design andprogramming services. The sources and uses of the supportdepartment time are summarized as follows:

From	To				Total LaborHours
	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)	$	104,000			$	68,400
Depreciation and other fixed costs		72,400				4,000
Total	$	176,400			$	72,400

Required:

1. Determine the total support costs allocated to each of theproducing departments using (a) the direct method, (b) the stepmethod (design department goes first), and (c) the reciprocalmethod? (Do not round intermediate calculations. Round yourfinal answer to nearest whole dollar amount.)

2. The company is considering outsourcing programming servicesto DDB Services Inc. for $52.00 per hour. Should Marin do this?

Note: there's 2 requirements , please make sure you do both withexplaination :)