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BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees,

BluStar 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.
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BluStar 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. Employees Transactions Department direct costs Administration Accounting 27 40,000 $352,800 $149,000 Domestic 47 20,000 $940,000 International 26 80,000 $3,670,000 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required 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. Round your final answers to the nea whole dollar amounts.) From Administration Accounting Domestic International Department costs 352,000 149,000 $ 940,000 $ 3,670,000 Administration allocation Accounting allocation Total cost 352,000 149,000 S 940,000 $ 3,670,000 $ S IS

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