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

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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 22 Employees Transactions Department direct costs 33,000 $361,000 Domestic 36 24,000 $935,888 International 42 96,000 $3,570,000 $141,000 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.) Administration Accounting Domestic International From Department costs Administration allocation Accounting 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.) Administration Accounting Domestic International From 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. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.) Administration Accounting Domestic International From Department costs Administration allocation Accounting allocation Total cost allocated

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