Domestic Required information[The following information applies to the questions displayed below]Marin Company produces two software products (Cloud-X and Cloud-Y) in two separate departments (A and B). Theseproducts are highly regarded network maintenance programs. Cloud-X is used for small networks and Cloud-Y is used forlarge networks. Marin is known for the quality of its products and its ability to meet dates promised for software upgradesDepartment A produces Cloud-X, and department B produces Cloud-Y. The production departments are supported by twosupport departments, systems design and programming services. The sources and uses of the support department timeare summarized as follows:FromDesign400DesignProgrammingThe costs in the two service departments are as follows:Labor and materials (all variable)Depreciation and other fixed costsTotalToProgramming Department A5,0001,000600a Direct Methodb. Step Method (Design Department goes first)c. The Reciprocal Method (using Solver)Design$ 86,00061,600$147,600Department 89,0001,000Department AProgramming$ 57,6004,000$ 61,600Required: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 answers tonearest whole dollar amount.)Department B$$$Total LaborHours15,0002,000Total000

Overhead : Indirect costs incurred while producing goods or services. Overhead costs cannot be…

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 Design Programming 5,000 400 To Design Programming The costs in the two service departments are as follows: Labor and materials (all variable) Depreciation and other fixed costs Total Department A Department 6 1,000 600 Design $ 86,000 61,600 $ 147,600 9,000 1,000 Programming $ 57,600 4,000 $ 61,600 Total Labor Hours 15,000 2,000

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 Design Programming 5,000 400 To Design Programming The costs in the two service departments are as follows: Labor and materials (all variable) Depreciation and other fixed costs Total Department A Department 6 1,000 600 Design $ 86,000 61,600 $ 147,600 9,000 1,000 Programming $ 57,600 4,000 $ 61,600 Total Labor Hours 15,000 2,000

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter16: Auditing It Controls Part Iii: Systems Development, Program Changes, And Application Auditing

Section: Chapter Questions

Problem 3P

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Required information [The following information applies to the questions displayed below.] 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 Design 400 Design Programming The costs in the two service departments are as follows: Labor and materials (all variable) Depreciation and other fixed costs Total To Programming Department A 5,000 a. Direct Method b. Step Method (Design Department goes first) c. The Reciprocal Method (using…
Required information [The following information applies to the questions displayed below.] 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 Design 400 Programming 5,000 Labor and materials (all variable) Depreciation and other fixed costs Total To Design Programming The costs in the two service departments are as follows: Department A 1,000 600 Design $ 65,000 49,000 $ 114,000 Department B 9,000 1,000 Programming $ 45,000 4,000 $…
! Required information [The following information applies to the questions displayed below.] 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 Design Programming 5,000 400 Design Programming The costs in the two service departments are as follows: Labor and materials (all variable) Depreciation and other fixed costs Total To Department A Department B 1,000 600 a. Direct Method b. Step Method (Design Department goes first) c. The…
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: 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.
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 Design 400 Design Programming The costs in the two service departments are as follows: To Programming Department A Department B 5,000 1,000 9,000 600 1,000 Labor and materials (all variable) Depreciation and other fixed costs Total a. Direct Method b. Step Method (Design Department goes first) c. The Reciprocal Method (using Solver) Design $ 95,000 67,000 $ 162,000 Programming $…
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 Required:…
Better Business Company (BBC) is in the process of planning a more advanced computer-based information system. Slavish, Moore, LLP, BBCs consulting firm, has recently been provided with an overview of their proposed plan: To ensure that the system functions as needed, the BBC Information System (BBCIS) will be created with input from its employees. System construction will begin with prototyping, computer-aided software engineering technology, and Gantt charts. From this point, IT professionals and a systems administrator, who are full-time employees of BBC, will create data models of the business process, define conceptual user views, design database tables, and specify system controls. Users in each department will submit written descriptions of their information needs and business problems to the IT professionals, who will then perform feasibility studies. Each aspect of the system will be documented in accordance with best practices and standards. The systems administrator will determine access privileges and maintain access control lists and database authorization tables. The administrator will have sole access to the transaction log, which will be used to record all changes made to database tables. A role of the administrator is to detect unauthorized access, reconstruct events, and promote personal accountability. The systems administrator will also be responsible for ensuring that virus protection software is current. Another important task of the administrator is to ensure that adequate backup to databases and applications occur and that disks and tapes are stored in a secure off-site location. Each employee requiring computer access will be assigned a user ID and password that will be entered when logging onto the system. If a computer terminal is left idle for more than five minutes, the system will close out the session and the user will need to log on again. Furthermore, users will be required to change their passwords once every year. Hardware will be purchased from Bell Computer Company with the advice of in-house systems developers. With the exception of basic applications, user departments will be allowed to purchase additional software that they need, which will be added to the system. BBCIS will run on a central server in the computer center located in the companys administration building. Two security guards will be assigned to the entrance to the computer room. To access the computer center, employees will swipe their ID cards on the lock to the main entrance door. The system will record the times of each entry and departure from the center. The data center will employ an advanced air-conditioning and air filtration system to eliminate dust and pollens. There will also be a sprinkler system to minimize damages in case of a fire. Required Based on BBCs plans for the implementation of a new computer system, describe the potential risks and needed controls. Classify these according to the relevant areas of the COSO framework.
Brew Bottle Company (BBC) is in the process of planning a more advanced computer-based information system. Slavish & Moore, LLP, BBC’s consulting firm, have recently been provided with an overview of their proposed plan:The Brew Bottle Company Information System (BBCIS) will be created with the help of its employees so that the system will function effectively. This helps ensure that the end product will perform the tasks that the user wants. System construction will begin with prototyping, computer-aided software engineering (CASE) technology, and Gantt charts. From here, systems professionals and a systems administrator who will work fulltime for BBC will create data models of the business process, define conceptual user views, design database tables, and specify system controls. Each user in each department will submit a written description of his or her needs and business problems to the systems professionals. Systems professionals will then perform analysis of feasibility and…
Consider the following dialogue between a systems professional, Joe Pugh, and a manager of a department tar- geted for a new information system, Lars Meyer:Pugh: The way to go about the analysis is to first examine the old system, such as reviewing key documents and observing the workers performing their tasks. Then we can determine which aspects are working well and which should be preserved. Meyer: We have been through these types of projects before and what always ends up happening is that we do not get the new system we are promised; we get a modified version of the old system.Pugh: Well, I can assure you that will not happen this time. We just want a thorough understanding of what is working well and what is not.Meyer: I would feel much more comfortable if we first started with a list of our requirements. We should spend some time up front determining exactly what we want the system to do for my department. Then, you systems people can come in and determine what portions to…
One way ERP vendors help to make the configuration process easier for their customers is to: All of the above. develop built-in configuration tools to address most of their customers' needs for system changes. encourage their customers to use decentralized databases. train their customers to use an existing system and build interfaces between it and their ERP system.
Lamar LLC is in the process of updating its revenues and receivables systems with the implementation of new accounting software. James Loden, Inc. is an independent information technology consultant who is assisting Tamar with the project. James has developed the following checklist containing internal control points that the company should consider in this new implementation: Will different system access levels for different users be incorporated?
Do world-class businesses use which of these systems to integrate all of a company’s worldwide functions, departments, and data into a single system? Cost standards Enterprise resource planning Just-in-time management Items a, b, and c are correct.