=+10-25 KK Kaizen approach to activity-based budgeting (continuation of 10-24) OBJECTIVE 6 Independent Supermarkets (IS) has a kaizen (continuous improvement) approach to budgeting monthly activity costs for each month of 2014. Each successive month, the budgeted cost-driver rate decreases by 0.2% relative to the preceding month (e.g. February’s budgeted cost-driver rate is 0.998 times January’s budgeted cost-driver rate, and March’s budgeted cost-driver rate is 0.998 times the budgeted February 2014 rate). IS assumes that the budgeted amount of cost-driver usage remains the same each month.

Required 1 What is the total budgeted cost for each activity and the total budgeted indirect cost for March 2014?