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Help Save & Exit BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on
Help Save & Exit 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 28 48 39,000 Department direct costs $353,000 $141,000 24,000 $950,000 24 96,000 $3,570,000 Required: b. 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. 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.) From Manamanta To Administration Accounting Domestic International 20141 000 2670 000 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.) To From Administration Accounting Domestic International Department costs. $ 353,000 $141,000 S 950,000 $ 3,570,000 Administration allocation Accounting allocation Total cost $ 353,000 $141,000 $ 950,000 $ 3,570,000
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