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Problem 11-55 (Algo) Comparison of Allocation Methods (LO 11-2, 3, 4) BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic

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Problem 11-55 (Algo) Comparison of Allocation Methods (LO 11-2, 3, 4) 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 27 41 32 Transactions 32,000 23,00 92,000 Department direct costs $357,000 $146,000 $945,000 $3,710,000 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 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 $ 357 0001 5 146.000 $ 945.000 $ 3.710,000 From Department costs Administration allocation Accounting allocation Total cont $ 357000 5 146.000 5 945 000 5 3,710,000

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