January 2018 January 2018 Budgeted Budgeted Amount of Cost Driver Used Cost-Driver Soft Fresh Packaged Activity Cost Driver Rate Drinks Snacks Food $ 94 17 27 17 Ordering Delivery Shelf-stocking Number of purchase orders Number of deliveries Hours of stocking time 82 12 65 21 $ 18.00 20 174 93 Customer support Number of items sold $ 0.21 4,800 34,400 10,700 Each successive month, the budgeted cost-driver rate decreases by 0.1% relative to the preceding month. So, for example, February's budgeted cost-driver rate is 0.999 times January's budgeted cost-driver rate, and March's budgeted cost-driver rate is 0.999 times the budgeted February rate. Gabriel's Corner assumes that the budgeted amount of cost-driver usage remains the same each month. The Elmore store of Gabriel's Corner, a chain of small neighborhood convenience stores, has a Kaizen (continuous improvement) approach to budgeting monthly activity costs for each month of 2018. Gabriel's Corner has three product categories: soft drinks (35% of cost of goods sold [COGS]), fresh snacks (25% of COGS), and packaged food (40% of COGS). The following table shows the four activities that consume indirect resources at the Elmore store, the cost drivers and their rates, and the cost-driver amount budgeted to be consumed by each activity in January 2018. E: (Click the icon to view the four activities and their cost data.) Click the icon to view additional cost driver information.) Read the requirements. Budgeted Cost-Driver Rates Activity January February March Ordering $ 94.00 $ 93.90600 $ 93.81209 Delivery 82.00 81.91800 81.83608 Shelf-stocking 18.00 17.98200 17.96402 Customer support 0.21 0.20979 0.20958 Now calculate total budgeted cost for each activity and the total budgeted indirect cost for March. (Use the rates you calculated above in your calculations. Round your answers to the nearest whole number.) Soft Fresh Packaged Drinks Snacks Food Total Activity Ordering Delivery Shelf-stocking Customer support