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 Administration Accounting Domestic International 22 45 33 Department direct costs 36,000 $356,000 22,000 $142,000 $945,000 88,000 $3,760,000 Required: a. 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.) To From Department costs Administration Accounting Domestic Administration allocation Accounting allocation 356,000 $142,000 $ (356,000) International 945,000 $3,760,000 205,385 150,615 Totals $ (142,000) 0 $ 29,400 113,600 0 $ 1,179,785 $ 4,024,215 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.) To From Administration Accounting Domestic International Department costs $ Administration allocation Accounting allocation Total cost allocated 356,000 $ 142,000 $ (356,000) 78,320 (220,320) 945,000 $3,760,000 160,200 117,480 44,064 176,256 $ 0 $ 0 $ 1,149,264 $ 4,053,736 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.) From Department costs Administration allocation Accounting allocation Administration Accounting To Domestic International $ 356,000 (413,447) 57,447 Total cost allocated $ 0 $ 0 $ 0 $ 0