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: 21 88,000 25 54 22,000 34,000 $359,000 Department direct costs $145000 94000$3,750,000 a. Allocate the cost of the service departments to the operating departments using the direct method. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.) Answer is complete and correct. From Department costs 359,000 145,000 945,000 3.750.000 0 258.480100.520 Administration (359,000) (145.000)29.000 6000 S 1.232.480 S 3.966.520 Totals b. Allocate the cost of the service departments to the operating departments using the step method. Start with Administration. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.) Answer is complete and correct. nistration A Department costs S 359.000$ 145.000$ 945,000$ 3,750,000 359,000) 89,750 193,86075,390 00 (234,750)0 40 950 0 187,800 alocation Total cost allocated 0 s 1,185,810 is 4,013,190 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.) Answer is complete but not entirely correct. 359,000 S 145,000 945000s 3.750,000 (359,000) 190.573 225,66887,759 38,116152457 335.573 S 1.208.784 3.990.216 Department costs S 359 00005145,000 os 945,000 s 3750 0000 Administration allocatiorn allocation Total cost allocated 0 0 S 335,573 1,208,784