(Appendix 48) Direct Method of Support Department Cost Allocation Stevenson Company is divided into two operating division Battery and Smal Motors. The company locates power and general feciory costs to each operating division using the direct method. Power costs we allocated on the basis of the number of machine hours and general factory costs on the basis of square footage Support department cost location using the direct method are based on the following data Support Departments Operating Divisions General Small Power Factory Battery Motors Overhead costs $160,000 $430,000 $160,000 134,600 Machine hou 2.000 2,000 7.000 Square footage 1.000 1.500 10.000 17,500 Direct labor hours 18.000 50,000 Required! 1. Calculate the allocation rabies for Power and General Factory. (Noter Carry these cakes out to four decimales, Power General Factory X Battery Small Motors x 3.000 X 2. Allocate the support service costs to the operating division. Round amounts to the nearest dollar. Use a minus to indicate traction. For those in which required, leave the box blank or enterrero (10) Previous Next Check My Work 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 X 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"). Operating Divisions Support Departments Power General Factory Battery Small Motors $ Direct costs 160,000 430,000 163,000 84,600 Allocate: 20,000 X 140,000 X Power - 160,000 107,500 X -400,000 General Factory 322,500 X $ 410,500 x $ 427,100 X Total 0 O 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 3. Assume divisional overhead rates are based on direct tabor hours. Calculate the overhead rate for the Battery Division and for the Small Motors Division, Round your answers to the nearest cent Battery overhead rate 22.81X Small Motors overhead rate 7.12 x Fem MyWort Partially correct