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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. Administration Accounting Domestic International Employees 28 44 28 Transactions 32,000 20,000 80,000 Department' direct costs $360,000 $143,000 $935,000 $3,700,000 Required: a. 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 c 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 Domestic International Administration Accounting From Department costs Administration allocation Accounting allocation Total cost Required > Department direct costs $360,000 $143,000 20,000 $935,000 80,000 $3,700,000 Required: a. 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 Requirede Required 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 Administration Accounting Domestic International From Department costs Administration allocation Accounting allocation Total cost Employees Transactions Department direct costs Administration Accounting 28 32,000 $360,000 $143,000 Domestic International 44 28 20,000 80,000 $935,000 $3,700, eee Required: a. 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 Rquired 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. Round your final answers to the nearest whole dollar amounts.) To Administration Accounting Domestic International From Department costs Administration allocation Accounting allocation Total cost Required B

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