The Pineapple Pen Company is divided into two operating divisions: pens and pencils. The company allocates the cost of the cafeteria and the maintenance department to each operating division using the direct method. Cafeteria costs are allocated on the basis of the number of employees in each department, and maintenance department costs on the basis of the number of square metres. Support department cost allocations using the direct method are based on the following data:

Required:
1. Calculate the allocation ratios for the cafeteria and maintenance department. (Carry these calculations out to four significant digits.)
2. Allocate the support service costs to the producing departments.
3. Assume departmental overhead rates are based on direct labour hours. Calculate the overhead rate for the pen division and for the pencil division. (Round overhead rates to the nearest cent.)

Operating Divisions Support Departments Cafeteria Pens Maintenance Pencils Overhead costs Number of employees Square metres Direct labour hours S1,050,000 15 $875,000 S1,800,000 $2,225,500 25 100 125,000 135,000 15,000 5,000 100,000 108,000