CoursHeroTranscribedText: BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic...
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Accounting
CoursHeroTranscribedText: 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 24 43 33 Transactions 36, 000 23, 090 92, 000 Department direct costs $355, 000 $149, 000 $945, 090 ,620,000 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 C Allocate the cost of the service departments to the operating departments using the reciprocal method. (Do intermediate calculations. Negative amounts should be indicated by a minus sign. Round your final answers whole dollar amounts.) To From Administration | Accounting Domestic International Department costs Administration allocation Accounting allocation Total cost 0 $ 0 $ 0 $
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