Budgets for production and direct manufacturing labour. (CMA, adapted) (LO 2) The All Frame Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Martin Flack, the company controller, is responsible for preparing the master budget and has accumulated the following information for the year:

Required

1. What is the total budgeted indirect cost at the Parksville store in January 2022? What is the total budgeted cost of each activity at the Parksville store for January 2022? What is the budgeted indirect cost of each product category for January 2022?
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?

Check Figure: 1. Total budgeted indirect cost, $27,147

\begin{tabular}{llrrrrr} & & January 2022 & & \multicolumn{3}{c}{\begin{tabular}{c} January 2022 Budgeted Amount \\ of Cost Driver Used \end{tabular}} \\ \cline { 7 - 7 } Activity & Cost Driver & \begin{tabular}{c} Budgeted \\ Cost Driver \\ Rate \end{tabular} & \begin{tabular}{c} Soft \\ Drinks \end{tabular} & \begin{tabular}{c} Fresh \\ Produce \end{tabular} & \begin{tabular}{c} Packaged \\ Food \end{tabular} \\ \hline Ordering & Number of purchase orders & $90.00 & 14 & 24 & 14 \\ Delivery & Number of deliveries & 82.00 & 12 & 62 & 19 \\ Shelf-stocking & Hours of stocking time & 21.00 & 16 & 172 & 94 \\ Customer support & Number of items sold & 0.18 & 4,600 & 34,200 & 10,750 \end{tabular}