- Blustar Company Has Two Service Departments Administration And Accounting And Two Operating Departments Domestic And 1 (47.6 KiB) Viewed 54 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. Administration Accounting 25 Domestic International 55 Employees Transactions 34,000 $364,000 21,000 $950,000 84,000 $3,680,000 Department direct costs $140,000 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. Answer is not complete. 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.) To From Administration Accounting 364,000 $ Domestic 140,000✔ S 950,000 International $ 3,680,000 Department costs $ Administration allocation Accounting allocation Total cost $ 950,000 IS 3,680,000 364,000 $ 140,000 S