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 26 38,000 $350,000 $140,000 Domestic 51 24,000 $950,000 International 23 96,000 $3,570,000 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 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 sion) From Department costs Administration allocation Accounting allocation Total cost To Administration Accounting Domestic International S 350,000 $ 148,000 $ 1960,000 $3,670,000 (350,000) 0 0 (148,000) 05 OS 950,000 $ 3,570,000 Check my work BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domest 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 26 Employees Transactions Department direct costs Domestic 51 24,000 $950,000 International 23 96,000 $3,570,000 38,000 $350,000 $140,000 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 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 $ 350,000 $ 148,000 5 950,000 $3,670,000 From Department cont Administration allocation Accounting allocation Tolcon 360,000 5 148.000 5 950,000 $3,670,000 Check my work WIUWI U V veures, PULVII LUI IU W pruully UITGERO, WILL 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 26 Transactions 38.000 24,000 96,000 Department direct costs $350,000 $140,000 $950,000 $3,570,000 51 23 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. cos Complete this question by entering your answers in the tabs below. Required A Required Required Allocate the cost of the service departments to the operating departments using the reciprocal method. (Do not found intermediate calculations. Negative amounts should be indicated by a minusground your hinal dwers to the nearest whole dollar amounts) Administration Accounting Domestic International 350,000 $ 140,000 $ 050.0005 2.570.000 From Department conti Administration allocation Accounting location 350.000 3 145.000 5 060.000 13.670.000
