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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: Administration Accounting Donatie International Employees 24 33 Transactions 38,000 24,000 96,000 Department direct conta $354,000 5141,000 $955,000 $3,690,000 43 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.) International To From Administration Accounting Domestic Department costs Administration allocation Accounting alocation Totais $ OS $ 0$ 0 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.) International To From Administration Accounting Domestic Department costs Administration allocation Accounting allocation Total cost alocated $ 0 $ 0 S 0 $ c. Allocate the cost of the service departments to the operating departments using the reciprocal method. (Do not round intermedi mediate calculations. Negative amounts should be indicated by a minus sign.) International To From Administration Accounting Domestic Department costs Administration location Accounting allocation Total cost alocated $ 05 0 $ os 0
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