Chapter 4 Problems eBock Calculator (Appendix 4B) Direct Method of Support Department Cost Alloration Stevenson Company is divided into two operating divisions: Battery and Small Motors. The company allocates power nd general actory costs to cach operating division using the direct method. Power costs are allocated on th 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 data Support Departments Operating Divisions Overhead costs Machine hours Square footage Direct labor hours Required: 1. Calculate the allocation ratios for Power and General Factory. (Note: Carry these calculations out to four decimal places, if necessary.) Power General Factory Battery Small Motors $84,600 1,000 15,000 60,000 S160,000 2,000 1,000 $430,000 $163,000 7,000 5,000 18,000 2,000 1,500 Powcr Gencral Factory 0.875 0.125 X 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 ze 0.25 X 0.75 Support Departments Operating Divisions Power General Factory Battery Small Motors Direct costs 160,000 V 30,000 163,000 84,600 Battery 0.875 0.125 X Small Motors 0.25 X 0.75 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 Power General Factory Battery Small Motors Direct costs 160,000 430,000 163,000 84,600V Allocate Power 160,000 124,304X 33,670X 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 cent Dattery overhead rate Small Motors overhcad rate 130,000 95,536 X 331,110X 26.96 X 5.87X