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Blu Star Company has two service departments. Administration and Accounting, and two operating departments Domestic and International. Administration costs are allocated on the basis of
Blu Star 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 BluStat operations follows: wployees Transactions Department direct costs Ministration Accounting 25 31.000 $364,000 $146,000 Domestic International 37 38 24,000 96.000 $960,000 $3,750,000 Required: n. Allocate the cost of the service departments to the operating departments using the direct method. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign) Adination Accounting Domestic laternational Departments Accounting to b. Allocate the cost of the service departments to the operating departments using the step method. Start with Administration (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.) b. Allocate the cost of the service departments to the operating departments using the step method. Start with Administration. (Do not round intermediate calculations. Negative amounts should be indicated by o minus sign.) To Accounting Domestic International From Administration Department costs Administration location Accounting location Total cost allocated c. Allocate the cost of the service departments to the operating departments using the reciprocal method. (Do not round intermediate calculations, Negative amounts should be indicated by a minus sign) Domestic International From Administration Accounting Departments Administration location Accounting allocation To costcod
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