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8 BluSter Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of
8 BluSter Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. 10 points Administration Accounting 23 Employees Transactions Department direct costs Skipped Domestic International 35 42 21,090 84,Bea $955,000 $3,550,000 38.ee $355,20 $141,200 eBook Required: a. Allocate the cost of the service departments to the operating departments using the direct method. b. Allocate the cost of the service departments to the operating departments using the step method. Start with Administration. c. Allocate the cost of the service departments to the operating departments using the reciprocal method. Print Complete this question by entering your answers in the tabs below. References Required A Required B Required
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