(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 Battery 160,000 430,000 $163,000 9,000 10,000 18,000 Power Factory Motors $84,600 1,000 15,000 60,000 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 2,000 2,000 1,000 1,500 0.0385 V 0.3846 0.5769 Allocation ratios for Power Battery 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") Support Departments Operating Divisions Small Motors 84,600 Power General Factory Battery Direct costs 160,000 430,000 163,000 Allocate: 16,555 -176,555 0 -430,000 0 0 General Factory 165,378 248,067 Power -156,940 X Total 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 overhead rates to the nearest cent Battery overhead rate Small Motors overhead rate