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The Jerico store of Jiffy Mart, a chain of small neighborhood convenience stores, is preparing its activity-based budget for January 2018. Jiffy Mart has
The Jerico store of Jiffy Mart, a chain of small neighborhood convenience stores, is preparing its activity-based budget for January 2018. Jiffy Mart has three product categories: soft drinks (35% of cost of goods sold [COGS]), fresh produce (25% of COGS), and packaged food (40% of COGS). The following table shows the four activities that consume indirect resources at the Jerico 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 activity and cost-driver information.) Read the requirements. Requirement 1. What is the total budgeted indirect cost at the Jerico store in January 2018? What is the total budgeted cost of each activity at the Jerico store for January 2018? What is the budgeted indirect cost of each product category for January 2018? Complete the following table to determine the total budgeted indirect cost, total budgeted cost of each activity, and budgeted indirect cost of each product category for January 2018. (Round the percentages to the nearest hundredth percent, X.XX%.) Ordering Delivery Shelf-stocking Customer support Total costs Percentage of total indirect costs Soft Drinks Fresh Packaged Snacks Food Total % % % January 2018 January 2018 Budgeted Budgeted Amount of Cost Driver Used Cost-Driver Soft Fresh Packaged Activity Cost Driver Rate Drinks Snacks Food Ordering Number of purchase orders $ 45 14 24 14 Delivery Number of deliveries $ 41 12 62 19 Shelf-stocking Hours of stocking time $ 10.50 16 172 94 Customer support Number of items sold $ 0.09 4,600 34,200 10,750
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