Total Body Inc. has a new promotional program that offers a free gift-wrapping service for its customers. Total's customer-service division 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 $0.50. Although the service is free to customers, a gift-wrapping service cost allocation is made to the division where the item was purchased. The customer-service division reported the following for the most recent month:

required

Using the dual-rate method, compute the amount allocated to each division 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

Actual Number Budgeted Number Practical Capacity of Gifts of Gifts to be Available Department Wrapped Wrapped for Gift-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