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(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 General Small Power Factory Battery Motors Overhead costs $160,000 $430,000 $163,000 584,600 Machine hours 2,000 2,000 7,500 3,000 Square footage 1,000 1,500 5,000 15,000 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 0.3000X 0.3000 x Small Motors 0.7500 X 0.7500 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 S $ $ $ S Nirert recte Check My Work 1 more Check My Work uses remaining 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 0.3000X 0.3000 x Small Motors 0.7500X 0.7500 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 Power General Factory Operating Divisions Battery Small Motors S $ $ S Direct costs 160,000 430,000 163,000 84,600 Allocate: Power -160,000 48,000 X 120,000 129,000 x General Factory 0 -430,000 322,500 Total 0 0 249,000 x 370,500 x 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 21.38 Small Motors overhead rate 7.55 Check My Work 1 more Check My Work uses remaining.