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The Orwell store of Henderson Mart, a chain of small neighborhood convenience stores, has a Kaizen (continuous improvement) approach to budgeting monthly activity costs
The Orwell store of Henderson Mart, a chain of small neighborhood convenience stores, has a Kaizen (continuous improvement) approach to budgeting monthly activity costs for each month of 2021. Henderson Mart 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 Orwell store, the cost drivers and their rates, and the cost-driver amount budgeted to be consumed by each activity in January 2021. Requirement 1. What are the total budgeted costs for each activity and the total budgeted indirect cost for March 2021? 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 March Activity Ordering Delivery Shelf-stocking Customer support January February $ 86.00 78.00 18.00 0.17
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