Blustar Company Has Two Service Departments Administration And Accounting And Two Operating Departments Domestic And 1 (49.37 KiB) Viewed 36 times
Blustar Company Has Two Service Departments Administration And Accounting And Two Operating Departments Domestic And 2 (53.27 KiB) Viewed 36 times
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. Employees Transactions Department direct costs Required A Administration Accounting 20 36,000 $362,000 Required B Required C From 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. Department costs Administration allocation Accounting allocation Total cost $146,000 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 $ Domestic International 41 19,000 $960,000 Administration Accounting Domestic 0$ 39 76,000 $3,540,000 < Required A 0$ International 05 Required C > 0
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. Employees Transactions Department direct costs Administration Accounting 20 From 36,000 $362,000 Department costs Administration allocation Accounting allocation Total cost $146,000 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 not round Intermediate calculations. Negative amounts should be indicated by a minus sign. Round your final answers to the nearest whole dollar amounts.) $ Domestic International 41 19,000 $960,000 Administration Accounting Domestic OS < Required B 39 76,000 $3,540,000 05 International 05 0
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