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1 Woods Company is divided into two operating divisions: Battery and Small Motors. The company allocates power and general factory costs to each operating division
Woods 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 data:Line Item DescriptionSupportDepartmentsPowerSupportDepartmentsGeneral FactoryOperatingDivisionsBatteryOperatingDivisionsSmall MotorsOverhead costs$$$$Machine hoursSquare footageDirect labor hoursRequired: Calculate the allocation ratios for Power and General Factory. Note: Carry these calculations out to four decimal places, if necessary.Line Item DescriptionPowerGeneral FactoryBatteryfill in the blank fill in the blank Small Motorsfill in the blank fill in the blank 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 Line Item DescriptionSupportDepartmentsPowerSupportDepartmentsGeneral FactoryOperatingDivisionsBatteryOperatingDivisionsSmall MotorsDirect costs$fill in the blank $fill in the blank $fill in the blank $fill in the blank Allocate:Powerfill in the blank fill in the blank fill in the blank fill in the blank General Factoryfill in the blank fill in the blank fill in the blank fill in the blank Total$fill in the blank $fill in the blank $fill in the blank $fill in the blank Assume divisional overhead rates are based on direct labor hours. Calculate the overhead rate for the Battery Division and for the Small Motors Division. Round your answers to the nearest cent. Line Item DescriptionAmountBattery overhead rate$fill in the blank Small Motors overhead rate$fill in the blank 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
Allocate the support service costs to the operating divisions. Round all amounts to the nearest dollar. Use a minus sign to indicate a s boxes in which no entry is required, leave the box blank or enter zero
Assume divisional overhead rates are based on direct labor hours. Calculate the overhead rate for the Battery Division and for the Small Motors Di answers to the nearest cent.
Battery overhead rate
$
Small Motors overhead rate
tablePower,General FactoryBattery
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