Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(Appendix 48) Direct Method of Support Department Cost Allocation Stevenson Company is divided into two operating divisions: Battery and Small Motors. The company allocates
(Appendix 48) Direct 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 direct method. Power costs are located on the basis of the number of machine hours and general factory sts on the basis of square footage. Support department cost alocations using the direct method are based on the following data Support Departments Operating Divisions General Small Power Factory Battery Hators Overhead cos $160,000 $430,000 $163,000 104,000 Machine hour 2,000 3,000 1,000 1,000 Square forage 1,000 1,500 10,000 15.000 Owet labor hous 18,000 00,000 Required 1. Ciculate the allocation ratios for Power and General Factory (Note: Carry these calculations out to four decimal places, y Battery Small Hurs Power General Factory 100 Support Department Operating Disle General Factory Battery Small Motors Urrect co 100,000 430,000 183.000 84400
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started