Firm X has a new promotional program that offers a free gift-wrapping service for its customers. Its customer-service department has practical capacity to wrap 5,000 gifts at a budgeted fixed cost of $4,950 each month. The budgeted variable cost to gift-wrap an item is $0.35. During September 2020, the department budgeted to wrap 4,500 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 month:

Department	Budgeted Items Wrapped	Actual Items Wrapped
A	1,000	1,200
B	850	650
C	1,000	900
D	750	450
E	900	800
Total	4,500	4,000

(27-1) Using the single-rate method, allocate gift-wrapping costs to different departments in these three ways (7 points):

(27-1-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).

(27-1-b). Calculate the budgeted rate based on the budgeted number of gifts to be wrapped and allocate costs based on actual usage.

(27-1-c). Calculate the budgeted rate based on the practical gift-wrapping capacity available and allocate costs based on actual usage

(27-2) Using the dual-rate method, compute the amount allocated to each department and the budgeted rate is based on capacity. (3 points)

(27-3) Comment on your results in (26.1) and (26.2). Discuss the differences, advantages, and disadvantages of the single-rate method and dual-rate method. (6 points)