PLEASE SHOW EXCEL EQUATIONS AND HOW THE ANSWERS ARE CALCULATED!!

Blustar company has two service departments, administration... Question: BluStar Company has two service departments, Admin... 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 25 45 180

Transactions 25,000 20,000 80,000

Department direct costs $ 360,000 $ 144,000 $ 936,000 $ 3,600,000

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 Accounting Domestic International Department costs Administration allocation Accounting allocation Total cost allocated

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.) To From Administration Accounting Domestic International Department costs Administration allocation Accounting allocation Total cost allocated

c. Allocate the cost of the service departments to the operating departments using the reciprocal method. (Negative amounts should be indicated by a minus sign. Round intermediate calculations to nearest whole dollar amount.) To From Administration Accounting Domestic International Department cost Administration allocation Accounting allocation Total cost allocated

d. Comment on Results