Cost accounting

Exquisite Department Store has a new promotional program that offers a free gift-wrapping service for its customers. Exquisite's customer-service department has practical capacity to wrap 7,500 gifts at a budgeted fixed cost of $6,750 each month. The budgeted variable cost to gift wrap an item is S0.30. During the most recent month, the 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 EEB (Click the icon to view the actual and budgeted units) Read the requirements. nt budgeted to wrap 6,750 gifts. Although the service is free to customers, a gift-wrapping i Data Table Budgeted Items Wrapped Actual Items 2 Department Giftware Women's Apparel Fragrances Men's Apparel Domestics Total 2,455 815 1,820 425 1,235 6,750 Wrapped 2020 720 1,555 545 1,610 6,450 Print Done 1. Using the single-rate method, allocate gift-wrapping costs to different departments in these three ways a. Calculate the budgeted rate based on the budgeted number of gifts to be wrapped and allocate costs based on the budgeted use (of gift- wrapping services) Calculate the budgeted rate based on the budgeted number of gifts to b. be wrapped and allocate costs based on actual usage Calculate the budgeted rate based on the practical gift-wrapping c. capacity available and allocate costs based on actual usage. Using the dual-rate method, compute the amount allocated to each department when (a) the fixed-cost rate is calculated using budgeted costs and the practical gift-wrapping capacity, (b) fixed costs are allocated based on budgeted usage of gift-wrapping services, and (c) variable costs are allocated using the budgeted variable-cost rate and actual usage. Comment on your results in requirements 1 and 2. Discuss the advantages of the dual-rate method. 2. 3. Print Done EE Click the icon to view the actual and budgeted unit s) Read the requirements Requirement 1. Using the single-rate method allocate gift-wrapping costs to different departments in these three wayS Start with allocating (a), then (b) and finally (c) (Round all of your answers to the nearest cent) Budgeted rate per item Giftware Women's Apparel Fragrances Men's Apparel Domestics Total Requirement 2. Using the dual-rate method, compute the amount allocated to each department when (a) the fixed-cost rate is calculated using budgeted costs and the practical gift-wrapping capacity, (b) fixed costs are allocated based on budgeted usage of gift-wrapping services, and (c) variable costs are allocated using the budgeted variable-cost rate and actual usage (Round all of your answers to the nearest cent) Enter any number in the edit fields and then continue to the next question Total Requirement 2. Using the dual-rate method, compute the amount allocated to each department when (a) the allocated based on budgeted usage of gift-wrapping services, and (c) variable costs are allocated using the calculated using budgeted costs and the practical gift-wrapping capacity, (b) fixed costs are budgeted variable-cost rate and actual usage. (Round all of your answers to the nearest cent) budgeted variable-cost rate and actual usage (Round alofy Variable Fixed Total Rate per item Giftware Women's Apparel Fragrances Men's Apparel Domestics Total Requirement 3. Comment on your results in requirements 1 and 2 Discuss the advantages of the dual-rate method Enter any number in the edit fields and then continue to the next question Giftware Women's Apparel Fragrances Men's Apparel Domestics Total Requirement 3. Comment on your results in requirements 1 and 2. Discuss the advantages of the dual-rate method The dual-rate method allocated fixed costs and variable costs roportionately to the departments causing the incurrence of those costs based on the epartment. The costs allocated to a department a .Fixed costs are allocated V of each V affected by the usage of other departments. nter any number in the edit fields and then continue to the next