Suppose a consumer group suspects that the proportion of households that have three or more cell phones is 0.71. A cell phone company has reason to believe that the proportion is not 0.71. Before they start a big advertising campaign, they conduct a hypothesis test. Their marketing people survey 107 households with the result that 83 of the households have three or more cell phones. What is the test statistics to test the Null hypothesis Ho: p = 0.71 against the alternative, Ha: p * 0.71?

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Chic Department Store has a new promotional program that offers a free gift-wrapping service for its customers. Chic'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. 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.) (a) Budgeted rate per item: Giftware Women's Apparel Fragrances Men's Apparel Domestics Total *** 00000 A 1 2 Giftware 3 Women's Apparel 4 Fragrances 5 Men's Apparel 6 Domestics 7 Total Department B Budgeted Items Wrapped 2,465 810 1,790 430 1,255 6,750 C Actual Items Wrapped 2,140 720 1,565 545 1,280 6,250 1. Using the single-rate method, allocate gift-wrapping costs to different departments in these three ways. 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). a. 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. 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. 3. Comment on your results in requirements 1 and 2. Discuss the advantages of the dual-rate method. a. b. C. 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. Chic Department Store has a new promotional program that offers a free gift-wrapping service for its customers. Chic'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. 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.) (a) Budgeted rate per item: Giftware Women's Apparel Fragrances Men's Apparel Domestics Total *** 00000 A 1 2 Giftware 3 Women's Apparel 4 Fragrances 5 Men's Apparel 6 Domestics 7 Total Department B Budgeted Items Wrapped 2,465 810 1,790 430 1,255 6,750 C Actual Items Wrapped 2,140 720 1,565 545 1,280 6,250 1. Using the single-rate method, allocate gift-wrapping costs to different departments in these three ways. 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). a. 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. 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. 3. Comment on your results in requirements 1 and 2. Discuss the advantages of the dual-rate method. a. b. C. 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.

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