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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 Domestic International Employees 50 28 Transactions 35,000 18,888 72,eee Department direct costs $358,600 $147, eee 938,680 $ 3,740,eee 22 $ 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 From Administration Accounting Domestic International Department costs Administration allocation Accounting allocation Total cost $ 0 $ 0 $ 0 $ 0 Required A Required B Required C 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.) Administration Accounting Domestic International From Department costs Administration allocation Accounting allocation Total cost $ 0 $ 0 $ 0 $ 0 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 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 From Domestic International Department costs Administration allocation Accounting allocation Total cost $ 0 $ 0 $ 0 $ 0
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