(Appendix 4B) Sequential 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 sequential method. General Factory is allocated first in the sequential method for the company. Support department cost allocations using the sequential method are based on the following data: Support Departments Operating Divisions General Power Factory Battery Small Overhead costs $160,000 $430,000 5162.000 2,000 2,000 Machine hours Square footage Direct labor hours 1,000 1,500 Required: 1. Calculate the allocation ratios for power and General Factory (Note: Carry these calculations out to four decimal places.) Allocation ratios for General Fact Power Battery Smal Motors 0.7143 Allocation ratios for Power Battery 0.8235 Small Motors 0.1765 X 0.7143 Allocation ratios for Power Battery 0.8235 X Small Motors 0.1765 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 (""). Support Departments Operating Divisions Small Power Battery General Factory 430,000 Direct costs 160,000 $ 163,000 84,600 Allocate: General Factory 20,468 -430.000 102,383 302,149 Power 148.615 X Total 485,318 352,282 x 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 overhead rates to the nearest cent. Battery overhead rate Small Motors overhead rate