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In: Accounting

BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International....

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    – 30 40    30

Transactions 36,000    – 19,000 76,000

Dept direct costs $ 359,000 $ 146,000    $ 930,000    $ 3,720,000

Required: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.

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 Domestic International
Department costs $359,000 $146,000 $930,000 $3,720,000
Administration allocation
Accounting allocation
Total cost $359,000 $146,000 $930,000 $3,720,000
  • Required C

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ekkarill92 answered 2 years ago
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