small neighborhood convenience stores, has a Kaizen (continuous improvement) approach to budgeting monthly The Elmore store of Henderson Mart, a chain of activity costs for each month of 2015. has three packaged food (40% of COGS) The following table that co ns he cost-diver ot budgoted to be consumed by each actvity in January 2015 sp resh snaks as r oss and Hender on Mart has three product categories: soft drinks 35% of cost of goods sold co ows the four activities that consume indirect resources at the Elmore store, the cost drivers and their rates, and (Click the icon to view the four activities and their cost data.) , February's budgeted stan er ate s Each successive month, the budgeted cost-driver rate decreases by 0.4% relative to the preceding month. So, for example 0.996 times January's budgeted cost-driver rate, and March's budgeted cost-driver rate is 0. budgeted amount of cost-driver usage remains the same each month. Read the requirements Customer support Henderson Mart assumes that the driver rate is 0.996 times the budgeted February rate. 996 times the 0.23UeyU U 22816 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. answers to the nearest whole number.) Soft Fresh Packaged Activity DrinksSnacks FoodTotal Ordering Delivery Shelf-stocking Customer support Total The Elmore store of Henderson Mart, a chain of small activity costs for each month of 2015. Henderson Mart packaged food (40% of COGS), The following table the cost-driver amount budgeted to be consumed by e January 2015 January 2015 Budgeted Amount of Cost Driver Used Soft Fresh Packaged Drinks Snacks Food EB (Click the icon to view the four activities and their Budgeted Each successive month, the budgeted cost-driver rate 0.996 times January's budgeted cost-driver rate, and budgeted amount of cost-driver usage remains the sa Cost-Driver Activity Cost Driver Read the requirements Requirement 1. What are the total budgeted costs for Begin by calculating the budgeted cost-driver rates for Ordering Delivery Shelf-stocking Rate 92 80 $ 25.00 $ 0.23 Number of purchase orders$ 15 13 17 4,400 28 15 21 96 34,40010,750 Number of deliveries $ Hours of stocking time 175 Customer support Number of items sold Budgeted Cost-Driver Ra Activity January Fobruary Print Done Ordering s 92.00 S 91.63200 80.00 79.68000 79.36128 25.00 24.90000 24.80040 Shelf-stocking Customer support 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 0.229080.22816 816 1 Requirements total budgeted i 1. What are the total budgeted costs for each activity and the total budgeted 2. What are the benefits of using a Kaizen approach to budgeting? What are the indirect cost for March 2015? Total limitations of this approach, and how might Henderson Mart management overcome them
