Question: I would appreciate help with completing PROBLEM C. (a and b are correct) BluStar Company has two service departments, Administration and Accounting, and two operating

I would appreciate help with completing PROBLEM C. (a and b are correct)

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 25 54 21
Transactions 40,000 21,000 84,000
Department direct costs $ 365,000 $ 149,000 $ 950,000 $ 3,510,000

I would appreciate help with completing PROBLEM C. (a and b are

correct) BluStar Company has two service departments, Administration and Accounting, and two

operating departments, Domestic and International. Administration costs are allocated on the basis

Administration and Accounting Allocation are missing and I would appreciate assistance in these calculations. Thank you.

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.) To From International Administration Accounting Domestic Department costs 365,000 149,000 950,000 3,510,000 0 (365,000) 102,200 Administration allocation 262,800 29,800 119,200 Accounting allocation S 0 S S 0 Totals 1,242,600 3,731,400

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