The Elmore store of Carlson Mart, a chain of small neighborhood convenience stores, has a Kaizen (continuous improvement) approach to budgeting monthly activity costs for each month of 2018. Carlson Mart has three product categories: soft drinks (35% of cost of goods sold [COGS]), fresh snacks (25% of COGS), packaged food (40% of COGS). The following table shows the four activities that consume indirect resources at the Elmore store, the cost drivers and their rates, and the cost-driver amount budgeted to be consumed by each activity in January 2018. What are the total budgeted costs for each activity and the total budgeted indirect cost for March 2018? What are the benefits of using a Kaizen approach to budgeting? What are the limitations of this approach, and how might Carlson Mart management 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. Budgeted Cost-Driver Rates Activity January February March Ordering 90.00 Delivery Shelf-stocking 75.00 25.00 Customer support 0.18 January 2018 Budgeted January 2018 Budgeted Amount of Cost Driver Used Cost-Driver Soft Fresh Packaged Activity Cost Driver Rate Drinks Snacks Food dering Number of purchase orders $ 90 14 27 14 elivery Number of deliveries $ 75 13 66 21 elf-stocking Hours of stocking time 25.00 20 179 98 stomer support Number of items sold $ 0.18 4,500 34,600 11,000 Cost-Driver Activity Rate for March Soft Drinks Fresh Produce Packaged Food Total Ordering Delivery Shelf-stocking Customer support