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 $0.30. During the most recent month, the department budgeted to wrap 6,750 gifts. 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: (Click the icon to view the actual and budgeted units.) Read the requirements service for its customers. Exquisite's customer-service department has practical capacity to wrap Data Table Budgeted Items Wrapped Actual Items Department Giftware Women's Apparel Fragrances Men's Apparel Domestics Total 2,455 815 1,820 425 1,235 6,750 Wrapped 2,020 720 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). b. Calculate the budgeted rate based on the budgeted number of gifts to be wrapped and allocate costs based on actual usage. c. Calculate the budgeted rate based on the practical gift-wrapping 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 Allocate costs in three ways 1 SI 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 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 actual usage a. b. c. PrintDone Exquisite Department Store has a new promotional program that offers a free gift-wrapping service for its customers. Exquisite's custo department has practical capacity to wrap 7,500 gifts at a budgeted fixed cost of S6,750 each month. The budgeted variable cost to gi item is S0.30. During the most recent month, the department budgeted to wrap 6.750 gifts. 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 repo following for the most recent month: EE (Click the icon to view the actual and budgeted units ) 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 rateper item: 1 | . Giftware Women's Appael Fragrances Men's Apparel Domestics Total Renni raman' 1 kinn tha d"al-rata ma.hnd rnmnito tho amnunt allnrater. tn earh d nartmant whan 'al tha fivadmet rate is rairi lata Enter any number in the edit flields and then continue to the next question. 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.) Variable Fixed Total Rate per item: Giftware Women's Apparel Fragrances Men's Apparel Domestics Total Enter any number in the edit fields and then continue to the next question 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 causing the incurrence of those costs based on the by the usage of other departments . Fixed costs are allocated proportionately to the departments 1 of each department The costs allocated to a department | | affected Enter any number in the edit felds and then continue to the next