(Appendix 4B) Sequential Method of Support Department Cost AllocationStevenson 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 allocatedfirst in the sequential method for the company. Support department cost allocations using the sequential method are based on the following data:Support Departments Operating DivisionsOverhead costsMachine hoursSquare footageDirect labor hoursRequired:PowerAllocation ratios for General FactoryBatteryPowerSmall Motors$160,000Allocation ratios for Power2,0001,000GeneralFactory$430,0001. Calculate the allocation ratios for Power and General Factory. (Note: Carry these calculations out to four decimal places.)2,0001,500Battery$163,0007,0007,50018,000SmallMotors$84,6001,50020,00060,000

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Description: (Appendix 4B) Sequential Method of Support Department Cost AllocationStevenson 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 sequ

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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 Allocation ratios for Power

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 Allocation ratios for Power

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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