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1. What is the total budgeted indirect cost at the Parksville store in January 2016? What is the total bud- geted cost of each activity
1. What is the total budgeted indirect cost at the Parksville store in January 2016? What is the total bud- geted cost of each activity at the Parksville store for January 2016? What is the budgeted indirect cost of each product category for January 2016? 2. Which product category has the largest fraction of total budgeted indirect costs? 3. Given your answer in requirement 2, what advantage does YM gain by using an activity-based approach to budgeting over, say, allocating indirect costs to products based on cost of goods sold? 6-27 Activity-based budgeting. The Parksville location of Your Mart (YM), a chain of small neighbour- hood grocery stores, is preparing its activity-based budget for January 2016. YM has three product cat- egories: soft drinks, fresh produce, and packaged food. The following table shows the four activities that consume indirect resources at the Parksville store, the cost drivers and their rates, and the cost driver amount budgeted to be consumed by each activity in January 2016
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