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I can't figure out how to even get the numbers. I started it out all on paper, but I wind up at a dead end.
I can't figure out how to even get the numbers. I started it out all on paper, but I wind up at a dead end.
The questions that need answering are A, B, and C
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 Employees 21 53 Transactions 30,000 20,000 Department direct costs $353,000 $144,000 $955,000 International 26 80,000 $3,610,000 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. 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 Complete this questloh by entering your answers Ih 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 Administration Domestic International From Department costs Administration allocation Accounting allocation Total cost 0 $ 0 $ 0 $ Required A Required B 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 step method. Start with Administration. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.) From Administration Accounting Domestic International Department costs Administration allocation Accounting allocation Total cost $ 0 $ 0 $ 0 $ 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 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.) To Administration Accounting Domestic International From Department costs Administration allocation Accounting allocation Total cost $ 0 % 0 % 0 % 0 Required B Required c )Step by Step Solution
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