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.

6 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. 10 points Administration Accounting 23 Employees Transactions Department direct costs 32,eee $364,000 Domestic 50 19,000 $960,000 International 27 76,eee $3,630,000 $141,800 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. Answer is not complete. 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.) Accounting S 141,000 S Domestic 960,000 International $ 3,630,000 From Department costs Administration allocation Accounting allocation Total cost Administration S 364,000 (364,000) 0 0 IS 0 S 141,000 IS 960,000 $ 3,630,000 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. X Answer is not complete. 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.). From Department costs Administration allocation Accounting allocation Total cost To Administration Accounting Domestic International Is 364,000 $ 141,000 s 960,000 $ 3,630,000 (364,000) 0 0 141.000 960,000 3,630,000 S 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. X Answer is not complete. 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.) From To Administration Accounting Domestic International 364,000 $ 141,000 s 960,000 $ 3,630,000 Department costs Administration allocation Accounting allocation Total cost 364,000 141,000 S 960,000 S 3,630,000