The Milton 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 [COGSI), fresh snacks (25% of COGS), and packaged food (40% of COGS). The following table shows the four activities that consurne indirect resources at the Milton store, the cost drivers and their rates, and the cost-driver armount budgeted to be consumed by each activity in January 2018. (Click the icon to view the four activities and their cost date.) (Click the icon to view additional cost driver information.) i Data Table - X Read the recitements 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 January 2018 January 2018 Budgeted Amount of Cost Driver Used Soft Fresh Packaged Drinks Snacks Food Activity Ordering Delivery Budgeted Cost-Driver Rates January February March S 88.00 76.00 Budgeted Cost-Driver Activity Cost Driver Rate Ordering Number of purchase orders $ Delivery Number of deliveries 3 76 Shelf-stocking Hours of stocking time $ 18.00 Customer support Number of items sold $ 0.22 12 25 12 11 61 22 18.00 17 176 92 Shelf-stocking Customer support 0.22 4,500 34,300 10.600 i More Info - X i Requirements 1. What are the total budgeted costs for each activity and the total budgeted indirect cost for March 2016? 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? Each successive month. the budgeted cos:-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 rale. Carlson Mart assumes that the budgeted amount of cost-driver usage remains the same each month. Print Done Print Dunu