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prox 4) Direct Method of Support Department Cost Alocation Stevenson Company in dided into two operating division Battery Small Motors. The comman allocate power and

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prox 4) Direct Method of Support Department Cost Alocation Stevenson Company in dided into two operating division Battery Small Motors. The comman allocate power and general factory costs to each operating division using the direct method. Power costre located on the basis of the number of machine hours and generatory couts on the base forage Soort department cost cation using the direct method are based on the following data Support Departments Operating Division General Small Power Factory Battery Motor Overheads 110,000 $430,000 $763,000 34 100 Machine hours 2,000 2.000 3,000 1.000 100 10,000 15.000 Doctor hour 18,000 80.000 Required 1. Calcethewoontoe Power and General Carry the cont out to decir Power General Factory 0.346 X 0.63 Motor 0.1111 05769 X 2. MOTIV to the ground wants to the nature to cate con for those in where the box orto Support Departments Power General Factory Operating Division Sa Motor 160,000 10.000 13,000 54.000 Donectabor hoon 18,000 60.000 Required 1. Calculate the location rates for Power and General Factory (Note: Carry these calculation out to four decimales, fry) Power General Factory Battery 0.8889 0.3846 X Small Motors 0.1111 0.5769 X 2. Allocate the support services to the operating division Round all amounts to the nearest dar, Use a minu sign to indicate a sutraction For those boxes in which no anty is required, leave the box blank enterer Support Departments Operating Divisions Power General Factory Battery Small Motors Derecto 160,000 430,000 163,000 84.600 Alec 160.000 165,27 X 240.067 X -430,000 136,940 19.015 X TO 0 45,3X 352,202 X 3. Resume where are ben de brune Calculate the overheater in the end of the Small Martin Yours to their con 20:06 by me Imet 5.7 X 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 allocated on the basis of the number of machine hours and general factory costs on the best of square footage Support department cost allocations in the direct method are based on the following data Support Departments Operating Divisions General Small Power Factory Battery Motors Overhead costs $160,000 5430,000 5163.000 $84.600 Machine hours 2,000 2,000 8,000 1,000 Square footage 1,500 10,000 15,000 Direct labor hour 25,000 80,000 1.000 Required: 1. Calodate the location ratios for Power and General Factory Note: Carry the calculations out to four decimal place, it necessary Power General Factory Battery 0.8889 0.3846 X Small Motor 0.1111 0.5769 X 2. Allocate the poort vice costs to the operating din Round will amounts to the nearest on se mision to indicate for those which leave the bowl orano CO2 Support Departments Operating Divisions Power General Factory Battery Small Motor D 160,000 430,000 153,000 $4,500 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 0.8889 0.3846 X Small Motors 0.1111 0.5769 X 2. Allocate the support service costs to the operating divisions. Round all amounts to the neprest dosar Usito interaction. For those toes in which he entry is required, leave the box blank or enterrero (TO) Support Departments Operating Division Power General Factory Battery Small Motor Direct costs 160,000 430,000 163,000 84,600 Allocate Power - 160,000 248,067 X 165,378 X 156,940 X General Factory 430,000 19,615 X Total 0 o 485,310X 352,282X 3. Asume divertentes en director hours. Calculate the overall for the try Division for them Motors Do Round your answers to the new Battery overhead rate 26.96 X Small Moons overhead rate 5.87 x

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