Master Budget and Responsibility Accounting Kaizen approach to activity-based budgeting The Jerico store of Jiffy Mart, a chain of small neighborhood convenience stores, is preparing its activity-based budget for January 2018. Jiffy Mart has three product categories: soft drinks (35% of cost of goods sold [COGS), fresh produce (25% of COGS), and packaged food (40% of COGS). Jiffy Mart has a Kaizen (continuous improvement) approach to budgeting monthly activity costs for each month of 2018. Each successive month, the budgeted cost-driver rate decreases by 0.4% relative to the preceding month. So, for example, February's budgeted cost-driver rate is 0.996 times January's budgeted cost-driver rate, and March' s budgeted cost-driver rate is 0.996 times the budgeted February rate. Jiffy Mart assumes that the budgeted amount of cost-driver usage remains the same each month. The following table shows the four activities that consume indirect resources at the Jerico store, the cost drivers and their rates, and the cost-driver amount budgeted to be consumed by each activity in January 2018. Activity Ordering Delivery Shelf stocking Customer support Cost Driver Number of purchase ouders Number of deliveries Hows of stocking time Number of items sold C. d. January 2018 Budgeted January 2018 Amount of Cost Driver Used Budgeted Fresh Packaged Soft Cost-Driver Rate Drinks Snacks Food $45 $41 $10.50 $0.09 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formalas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Requirement What are the total budgeted cost for each activity and the total budgeted indirect cost for March 2018? 14 24 12 62 16 172 4,600 34,200 Saving & Submitting Solution 1 Save file to desktop. 8. Create folder on desktop, and label COMPLETED EXCEL PROJECTS b. Save your solution in the folder you just created; add-solution-date to end of file name 2 Upload and submit your file to be graded. 8. Navigate back to the activity window - screen where you downloaded the initial spreadsheet b. Click Choose button under step 3; locate the file you just saved and click Open Click Upload button under step 3 Click Submit button under step 4 INSTRUCTIONS ENTERANSWERS 14 19 94 10,750 Viewing Results 1 Click on Results tab in MyAccountingLab 2 Click on the Assignment you were working on 3 Click on Project link; this will bring up your Score Card 4 Within Score Card window, click on Live Comments Report (lower right) to download spreadsheet with feedback D7 1 2 N10 A 2 :X fx B 3 Activity 4 Ordering 5 Delivery 5 Shelf-stocking 7 Customer support 3 Total 9 =0.09*10750 Soft Drinks C (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) $630 492 168 414 Fresh Packaged Snacks Food $1,080 2,542 1,806 3,078 $1,704 $8,506 E $630 779 987 968 $3,364 Total F $2,340 3,813 2,961 4,460 $13,574 0