Reference no: EM132611537

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                               -                                      27                              51                         22

Transactions                         38,000                                     -                         25,000                 100,000

Department direct costs        $ 359,000                             $ 142,000                        $ 950,000           $3,650,000

Question 1: 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.)