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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: image text in transcribedimage text in transcribed

1 Saved BluStar Company has two service departments, Administration and Accounting, and two c International. Administration costs are allocated on the basis of employees, and Accounti of transactions. A summary of BluStar operations follows: Administration Accounting Domestic International Employees Transactions Department direct costs 23 35,000 $354,006 42 23,000 $95e,eee 35 92,000 $3,62e,eee $146 , Required: a. Allocate the cost of the service departments to the operating departments using the di calculations. Negative amounts should be indicated by a minus sign.) Un Canvas e Homepage-Oklah B school D Banks Lifeguard Swim Club wedding Jobs ct Saved Help Save & ExiSubm 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.) From dministration Accounting $354,000146,000950,000 3,620,000 Domestic International Department costs Administration allocation Accounting allocation Total cost allocated (146,000) $354,000S$ 0950,000 3,620,000 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.) Prey 3 of 3 Next

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