Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

STA BluStar Company has two service departments, Administration and Accounting, and two operating departments Domestic and International Administration costs are allocated on the basis of

image text in transcribed
image text in transcribed
image text in transcribed
STA 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 30 Esployees Transactions Department direct costs 39, Bee $361,000 Domestic International 29 23,000 92,000 5930,000 $3,670,000 $141,800 Required: a. Allocate the cost of the service departments to the operating departments using the direct method . 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 direct method. (Do not round Intermediate calculations. Negative amounts should be indicated by a minus sign.) To Administration Accounting Domestic International From Department costs Administration location Accounting location Total cost Required> 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 Employees Transactions Department direct costs 39,60 $361,00 Accounting Domestic International 34129 23,888 92,000 $141,000 $930,000 53,670,000 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 Recificed Required Allocate the cost of the service departments to the operating departments using the step method. Start with Administration. (Do not rourid intermediate calculations. Negative amounts should be indicated by a minus sign.) Azministration To Accounting Domestic International From Department costs Administration location Mounting allocation Towost Required A Required) share thenoph 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 30 Enployees Transactions Department direct costs 39, eee $361,600 Domestic 41 23,000 $930,000 International 29 92,000 $3,67e, 5141,880 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 E Requited 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 location Accounting location Total cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Software Quality Assurance Internal Audit And IT Audit Integrated Testing Security And Audit

Authors: Abu Sayed Mahfuz

1st Edition

0367567970, 978-0367567972

More Books

Students also viewed these Accounting questions

Question

What is the pH of distilled water? 0 1 7 1 4

Answered: 1 week ago