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