Answer all 3 requirementsPlease do not give solution and formulae in image format.. thanku BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic andInternational. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of numberof transactions. A summary of BluStar operations follows.EmployeesTransactionsDepartment direct costsAdministration37,000$351,000Required A Required B Required CAccounting Domestic International214921,000$142,000 $935,000Required: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.From-Department costsAdministration allocationAccounting allocationTotal costAllocate the cost of the service departments to the operating departments using the direct method. (Do not roundintermediate calculations. Negative amounts should be indicated by a minus sign.)Administration Accounting3084,000$3,630,000ToDomesticInternational BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic andInternational. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of numberof transactions. A summary of BluStar operations follows.EmployeesTransactionsDepartment direct costsAdministration Accounting Domestic214921,000$935,00037,000$351,000Complete this question by entering your answers in the tabs below.Required A Required B Required CFrom$142,000Required: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.Department costsAdministration allocationAccounting allocationTotal costAllocate 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.)InternationalAdministration Accounting3084,000$3,630,000ToDomesticInternational

Lets understand the basics. Cost of service department needs to allocate to production department…

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 37,000 $351,000 Accounting Domestic International 21 49 21,000 $935,000 $142,000 30 84,000 $3,630,000 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.

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 37,000 $351,000 Accounting Domestic International 21 49 21,000 $935,000 $142,000 30 84,000 $3,630,000 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.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 1CMA

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