1. (Appendix 4B) 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 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:

   	Support Departments				Operating Divisions
   	Power		General Factory		Battery		Small Motors
   Overhead costs	$160,000		$430,000		$163,000		$84,600
   Machine hours	2,000		2,000		9,000		2,500
   Square footage	1,000		1,500		5,000		17,500
   Direct labor hours					18,000		60,000

   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	fill in the blank 1	fill in the blank 2
   Small Motors	fill in the blank 3	fill in the blank 4

   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 ("0").

   Support Departments

   Operating Divisions

   Power

   General Factory

   Battery

   Small Motors

   Direct costs

   $fill in the blank 5

   $fill in the blank 6

   $fill in the blank 7

   $fill in the blank 8

   Allocate:

   Power

   fill in the blank 9

   fill in the blank 10

   fill in the blank 11

   fill in the blank 12

   General Factory

   fill in the blank 13

   fill in the blank 14

   fill in the blank 15

   fill in the blank 16

   Total

   $fill in the blank 17

   $fill in the blank 18

   $fill in the blank 19

   $fill in the blank 20

   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.

   Battery overhead rate	$fill in the blank 21
   Small Motors overhead rate	$fill in the blank 22