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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,

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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 21 35,000 $364,000 $140,000 Domestic 40 23,000 $950,000 International 39 92,000 $3,590,000 Required: o. 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 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 nearest whole dollar amounts.) From Department costs Administration allocation Accounting allocation To Administration Accounting 5364000 140,000 Domestic International 950 000 $3.590,000 Total cos 5 510,000 5 140,000 $ 950.000 3590 000

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