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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 48 Employees Transactions Department direct costs 33,000 $355,000 International 23 100,000 $3,690,000 25,000 $940,000 $149,000 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. 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.) Administration Accounting Domestic $ 355,000[ $ 149,000 $ 940,000 International $ 3,690,000 From Department costs Administration allocation Accounting allocation Total cost $ 355,000 $ 149,000 $ 940,000 $ 3,690,000

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