Do not give answer in image formate 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 costsRequired AFromAdministration Accounting25Required: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.Department costsAdministration allocation.Accounting allocationTotal cost25,000$360,000Required B Required CAllocate 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.)$$144,000$Administration Accounting DomesticDomestic4520,000$936,000To0 $International18080,000$3,600,000International360,000 $144,000 $936,000 $3,600,000(360,000)(144,000)0$ 936,000 $3,600,000 Required A Required B Required CAllocate the cost of the service departments to the operating departments using the step method. Start with Administration.(Do not round Intermediate calculations. Negative amounts should be indicated by a minus sign.)FromDepartment costsAdministration allocationAccounting allocationTotal costFromDepartment costsAdministration allocationAccounting allocationTotal costAdministration Accounting Domestic International$ 360,000 $144,000 $ 936,000 $3,600,000(360,000)$Required A Required B Required CAllocate the cost of the service departments to the operating departments using the reciprocal method. (Negative amountsshould be indicated by a minus sign. Round intermediate calculations and final answers to the nearest whole dollar amounts.)To$0 $ 144,000 $ 936,000 $3,600,000Administration Accounting360,000 $$360,000 $To144,000 $144,000 $DomesticInternational3,600,000936,000 $936,000 $3,600,000

Lets understand the basics.In direct method of cost allocation, cost of service department gets…

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 25,000 $360,000 Employees Transactions Department direct costs Accounting Domestic 25 45 20,000 $144,000 $936,000 International 180 80,000 $3,600,000 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.