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The chain of 99 Cosvenience Stores located across the island are preparing their activity-based budget for January 2019. The stores carry three classes of items

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The chain of 99 Cosvenience Stores located across the island are preparing their activity-based budget for January 2019. The stores carry three classes of items outlined below: The following table shows the activities that consume indirect resources at the 99 Convenience Stores, the cost drivers, their rates and the cost driver amount budgeted to be consumed by each activity in January 2019. TURNN OVER Page 5 Required: 1. Calculate the following (show workings): (17 marks) a. Total budgeted indirect cost for each activity for 2019 b. Total budgeted indirect cost for each product category c. Percentage of total bodgeted indirect costs for each product category 2. Provide a comparison of the indirect costs allocated using: (3 marks) a. percentage of total budgeted indirect costs and b. cost of goods sold PART B] - 5 Marks 1. Product-mix decisions are those decisions managers make about which products to sell and in what quantities. Briefly explain the factors that are likely to affect these decisions. (2 marks) 2. Briefly describe the 'theory of constraints' and 'bottleneck point'. (3 marks) The chain of 99 Cosvenience Stores located across the island are preparing their activity-based budget for January 2019. The stores carry three classes of items outlined below: The following table shows the activities that consume indirect resources at the 99 Convenience Stores, the cost drivers, their rates and the cost driver amount budgeted to be consumed by each activity in January 2019. TURNN OVER Page 5 Required: 1. Calculate the following (show workings): (17 marks) a. Total budgeted indirect cost for each activity for 2019 b. Total budgeted indirect cost for each product category c. Percentage of total bodgeted indirect costs for each product category 2. Provide a comparison of the indirect costs allocated using: (3 marks) a. percentage of total budgeted indirect costs and b. cost of goods sold PART B] - 5 Marks 1. Product-mix decisions are those decisions managers make about which products to sell and in what quantities. Briefly explain the factors that are likely to affect these decisions. (2 marks) 2. Briefly describe the 'theory of constraints' and 'bottleneck point

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