(Appendix 4B) Sequential Method of Support Department Cost Allocation Stevenson Company is divided into two operating di

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Appendix 4b Sequential Method Of Support Department Cost Allocation Stevenson Company Is Divided Into Two Operating Di 1 (18.64 KiB) Viewed 72 times

(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 Factory Battery Motors $430,000 $163,000 $54,600 Power Overhead costs $160,000 Machine hours 2,000 2,000 1,500 9,000 5,000 Square footage 1.000 1,500 17,500 60,000 Direct labor hours 18,000 Required: 1. Calculate the allocation ratios for Power and General Factory (Note: Carry these calculations out to four decimal places)