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Please provide solutions for the answers if possible. BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration
Please provide solutions for the answers if possible.
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 Employees Transactions Department direct costs 35 88,000 $140,000 940,000 $3,660,000 42 22,000 23 34,000 351,000 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.) To From Administration Department costs Administration allocation Totals 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 Administration Department costs Administration al location Total cost allocated 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.) From Administration Department costs Administration allocation Total cost allocatedStep by Step Solution
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