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The Troy store of Henderson Mart, a chain of small neighborhood convenience stores, has a Kaizen (continuous improvement) approach to budgeting monthly activity costs for each month of 2018. Henderson Mart has three product categories: soft drinks (35% of cost of goods sold (COGST), fresh snacks (25% of COGS), and packaged food (40% of COGS). The following table shows the four activities that consume Indirect resources at the Troy store, the cost drivers and their rates, and the cost-driver amount budgeted to be consumed by each activity in January 2018 Click the icon to view the four activities and their cost data.) Click the icon to view additional cost driver information) Read the requirements Data table Reqy Begid XXXX) January 2018 Ordd January 2018 Budgeted Amount of Cost Driver Used Soft Fresh Packaged Drinks Snacks Food 15 28 15 12 65 23 Budgeted Cost-Driver Activity Cost Driver Rate Ordering Number of purchase orders $ 86 Delivery Number of deliveries $ 75 Shell-stocking Hours of stocking time $ 18.00 Customer support Number of items sold $ 0.20 DOM Shel Cust 17 175 96 4,600 34,300 10,500 Print Done Requirement 1. What are the total budgeted costs for each activity and the total budgeted indirect cost for March 2018? Begin by calculating the budgeted cost-driver rates for February, then calculate March (Round your answers to five decimal places, XXXXXX) Budgeted Cost-Driver Rates Activity January February March Ordering $ 86.00 Requirements Delivery 75.00 Shelf-stocking 18.00 1. What are the total budgeted costs for each activity and the total budgeted Customer support indirect cost for March 20182 2. What are the benefits of using a Kaizon approach to budgeting? What are the limitations of this approach, and how might Henderson Mart management overcome them? 0.20 Print Done Tresh sh The following table shows the four activities that consume indirect resources at the Troy store, the co be consumed by each activity in January 2018. Our activities and their cost data.) (Click the icon to view additional cost driver information.) More info 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. Henderson Mart assumes that the budgeted amount of cost-driver usage remains the same each month. Print Done