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(Appendix 4B) Sequential Method of Support Department Cost Allocation Stevenson Company is divided into two operating divisions: Battery and Small Motors. The company allocates power
(Appendix 4B) Sequential 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 sequential method. General Factory is allocated first in the sequential method for the company. Support department cost allocations using the sequential method are based on the following data: Support Departments Operating Divisions General Small Motors $84,600 Battery $160,000 $430,000 $163,000 7,000 10,000 18,000 Power Factory Overhead costs Machine hours Square footage Direct labor hours Required: 1. Calculate the allocation ratios for Power and General Factory. (Note: Carry these calculations out to four decimal places.) Allocation ratios for General Factory Power Battery Small Motors Allocation ratios for Power 1,500 20,000 60,000 2,000 2,000 1,000 1,500 0.048 X 0.3846X Battery Small Motors
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