E$22-23.$ Activity$-$Based Budget

Highland Industries has the following budget information available for February:

Required

a$.$ Use activity$-$based costing to prepare a manufacturing cost budget for February. Clearly distinguish

between unit, batch, and facility$-$level costs.

$b.$ The operating managers at Highland Industries are concerned that the budgeting process is too time$-$

consuming and diverts attention from their current day$-$to$-$day responsibilities. Discuss the reasons

that Highland should continue budgeting.