3. [LO2] Alice Beauty & Spa has a new promotion that offers a free gift-wrapping service for its customers. Alice's customer-service department has practical capacity to wrap 7,500 gifts at a budgeted fixed cost of RM6,750 each month. The budgeted variable cost to gift wrap an item is RM0.50. Although the service is free to customers, a gift-wrapping service cost allocation is made to the department where the item was purchased. The customer-service department reported the following for the most recent month: < < Department Actual number of gifts wrapped Budgeted number of gifts to be Practical capacity available for gift- wrapped wrapping Women's face wash 2,100 2,475 2,625 Men's face wash 750 < 825 938 Fragrances 1,575 1,800 1,969 Body wash 525 450 656 Hair products < 1,050 1,200 < 1,312 Total 6,000 6,750 7,500 < a. Using the single-rate method, allocate gift-wrapping costs to different departments in these three ways. < i. Calculate the budgeted rate based on the budgeted number of gifts to be wrapped and allocate costs based on the budgeted usage. < ii. iii. < Calculate the budgeted rate based on the budgeted number of gifts to be wrapped and allocate costs based on actual usage. < < Calculate the budgeted rate based on the practical gift-wrapping capacity available and allocate costs based on the actual usage. < < < b. Using the dual-rate method, compute the amount allocated to each department when (i) fixed-cost rate is calculated using budgeted costs and the practical gift-wrapping capacity, (ii) fixed costs are allocated based on budgeted usage of gift-wrapping services, and (iii) variable costs are allocated using the budgeted variable-cost rate and actual usage