Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check my work BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International . Administration costs are allocated on

image text in transcribed
image text in transcribed
Check my work 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 Transactions 35,000 21,000 84,000 Department direct costs $357,000 $148,800 $960,000 $3,550,000 24 54 22 5 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.) Administration Accounting Domestic International From Department costs Administration allocation Accounting allocation Totals $ 0 $ 0 $ $ 0 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic And Investigative Accounting

Authors: D. Larry Crumbley, Lester E. Heitger, G. Stevenson Smith

6th Edition

0808034871, 9780808034872

More Books

Students also viewed these Accounting questions

Question

What role does the Federal Reserve System play in clearing checks?

Answered: 1 week ago