(Appendix 48) Direct Method of Support Department Cost Allocation Stevenson Company is divided into two operating divisions: Battery and Small Motors. The company allocates power and general factory costs to each operating division using the direct method. Power costs are allocated on the basis of the number of machine hours and general factory costs on the basis of square footage. Support department cost allocations using the direct method are based on the following date: Support Departments Operating Divisions General Small Power Factory Battery Motors Overhead costs $160,000 $430,000 $163,000 534,600 Machine hours 2,000 7.000 3,000 Square footage 1,000 1,500 10,000 15,000 Direct Inbor hours 18.000 60,000 Required: 1. Calculate the allocation ration for Power and General Factory (Note: Carry these calculation out to four decimat places, if necessary) Power General Factory 2.000 Battery Small Motors 2. Allocate the support service costs to the operating divisions. Round all amounts to the nearest dollar. Use a minus sign to indicate a subtraction. For those boxes in which no entry is required, leave the box blank or enter zero ("O"). Support Departments Operating Divisions Power General Factory Battery Small Motors Direct costs Allocate Power General Factory Total 3. Assume divisional overhead rates are based on direct labor hours. Calculate the overhead rate for the Battery Division and for the Small Motors Division, Round your answers to the nearest cont. Battery overhead rate Small Motors overhead rata