Unithe tex hentakeassignment Main.do?irwoker assignments&takeAssignmentSession Locator assignment-takeinprogress=false * O @ (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 Small General Factory Power Battery Motors Overhead costs $163,000 $84,600 Machine hours $160,000 2,000 1,000 $430,000 2,000 1,500 8,000 2,000 Square footage 10,000 18,000 17,500 60,000 Direct labor hours 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 0. 87 0.20 X Battery 0.36 Small Motors X 0.63 x Previous Next > 0628 p. 1 Check My Work us remaining. teachir X keAssignment Main.do?invokerassignments&takeAssignmentSessionLocator assignment take&inprogress-false * O @ 13 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 Power General Factory Operating Divisions Battery Small Motors Direct costs 160,000 430,000 163,000 84,600 Allocate: Power -160,000 128,000 32,000 273,609 X General Factory -430,000 156,348 Total 447,348 390,209 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. 24.85 Battery overhead rate Small Motors overhead rate $ 6.50 Unithe tex hentakeassignment Main.do?irwoker assignments&takeAssignmentSession Locator assignment-takeinprogress=false * O @ (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 Small General Factory Power Battery Motors Overhead costs $163,000 $84,600 Machine hours $160,000 2,000 1,000 $430,000 2,000 1,500 8,000 2,000 Square footage 10,000 18,000 17,500 60,000 Direct labor hours 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 0. 87 0.20 X Battery 0.36 Small Motors X 0.63 x Previous Next > 0628 p. 1 Check My Work us remaining. teachir X keAssignment Main.do?invokerassignments&takeAssignmentSessionLocator assignment take&inprogress-false * O @ 13 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 Power General Factory Operating Divisions Battery Small Motors Direct costs 160,000 430,000 163,000 84,600 Allocate: Power -160,000 128,000 32,000 273,609 X General Factory -430,000 156,348 Total 447,348 390,209 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. 24.85 Battery overhead rate Small Motors overhead rate $ 6.50
