The Bethel store of Carlson Mart, a chain of small neighborhood convenience stores, has Kaizen (continuous improvement) approach to budgeting monthly activity costs for each month of 2021. Carlson Mart 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 Bethel store, the cost drivers and their rates, and the cost-driver amount budgeted to be consumed by each activity in January 2021. (Click the icon to view the four activities and their cost data.) (Click the icon to view additional cost driver information.) Read the requirements. Requirement 1. What are the total budgeted costs for each activity and the total budgeted indirect cost for March 2021? Begin by calculating the budgeted cost-driver rates for February, then calculate March. (Round your answers to five decimal places, X.XXXXX.) Budgeted Cost-Driver Rates Activity January February Ordering $ 95.00 Delivery 84.00 Shelf-stocking 16.00 Customer support 0.19 March Data table C - X More info January 2021 Budgeted Cost-Driver Activity Cost Driver Rate Snacks January 2021 Budgeted Amount of Cost Driver Used Soft Fresh Packaged Drinks Food Ordering Delivery Number of purchase orders Number of deliveries $ 95 17 27 17 S 84 13 63 21 Shelf-stocking Hours of stocking time Customer support Number of items sold $ 16.00 19 176 94 S 0.19 4,200 34,200 11,000 Print Done Each successive month, the budgeted cost-driver rate decreases by 0.3% relative to the preceding month. So, for example, February's budgeted cost-driver rate is 0.997 times January's budgeted cost-driver rate, and March's budgeted cost-driver rate is 0.997 times the budgeted February rate. Carlson Mart assumes that the budgeted amount of cost-driver usage remains the same each month. Requirements 1. What are the total budgeted costs for each activity and the total budgeted indirect cost for March 2021? 2. What are the benefits of using a Kaizen approach to budgeting? What are the limitations of this approach, and how might Carlson Mart management overcome them? Print Done