The Bethel 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 Bethel 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 January 2018 Budgeted Cost-Driver Activity Cost Driver Rate Ordering Number of purchase orders $ 86 Delivery Number of deliveries $ 78 Shelf-stocking Hours of stocking time 24.00 Customer support Number of items sold $ 0.21 January 2018 Budgeted Amount of Cost Driver Used Soft Fresh Packaged Drinks Snacks Food 16 25 16 14 63 21 18 171 98 4,800 34,500 10,600 GA GA 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. 1. What are the total budgeted costs for each activity and the total budgeted indirect cost for March 2018? 2. What are the benefits of using a Kaizen approach to budgeting? What are the limitations of this approach, and how might Gabriel's Corner management overcome them? 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, X.XXXXX.) Budgeted Cost-Driver Rates Activity January February March Ordering $ 86.00 $ 85.91400 $ 85.82809 Delivery 78.00 77.92200 77.84408 Shelf-stocking 24.00 23.97600 23.95202 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 Food Drinks Snacks Total Activity Ordering Delivery Shelf-stocking Customer support Total