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 26 Employees Transactions Department direct costs Domestic 37 25,000 $ 955,000 International 37 100,000 $3,790,000 37,000 $360,000 $145,000 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 Domestic International $ 3,790,000 Administration Accounting $ 360,000 $ 145,000 $ (360,000) 0 0 (145,000) $ 0 $ 0 $ Department costs Administration allocation Accounting allocation Totals 955,000 180,000 1,135,000 $ 3,790,000 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.) Administration Accounting S 145,000 Domestic $ 955,000 International $ 3,790,000 $ 360,000 From Department costs Administration allocation Accounting allocation Total cost allocated (360,000) 0 $ 0 $ 145,000 $ 955,000 $ 3,790,000 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.) Administration Accounting $ 360,000 $ 145,000 Domestic $ 955,000 International $ 3,790,000 From Department costs Administration allocation Accounting allocation Total cost allocated $ 360,000 $ 145,000 $ 955,000 $ 3,790,000