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 AccountingDomestic Intemational 21 76,000 $149,000 940,000 $3,540,000 53 19,000 30,000 $364,000