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 2018. Henderson Mart has three product categories: soft 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 2018. E: (Click the icon to view the four activities and their cost data.) i (Click the icon to view additional cost driver information.) improvement) approach to budgeting monthly activity costs for each month of 2018. Henderson Mart has three product categories: soft drinks (35% of cost of goods sold [COGS]), fresh snacks (25% of COGS), and Orwell store, the cost drivers and their rates, and the cost-driver amount budgeted to be consumed by each activity in January 2018 information.) i Data Table Activity Cost Driver Ordering Number of purchase orders Delivery Number of deliveries Shelf-stocking Hours of stocking time Customer support Number of items sold January 2018 Budgeted Cost-Driver Rate $ 90 $ 78 $ 25.00 $ 0.19 January 2018 Budgeted Amount of Cost Driver Used Soft Fresh Packaged Drinks Snacks Food 1526 14 63 173 4,100 34,300 10.750 - 21 Print Done Requirements 1. What are the total budgeted costs for each activity and the total budgeted indirect cost for March 2018? 2. What are the benefits of using a Kaizen approach to budgeting? What are the limitations of this approach, and how might Henderson Mart management overcome them? Print Done 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 2018. 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 2018. Click the icon to view the four activities and their cost data.) (Click the icon to view additional cost driver information.) Read the requirements. 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, X.XXXXX.) Budgeted Cost-Driver Rates Activity January February March Ordering $ 90.00 Delivery 78.00 Shelf-stocking 25.00 Customer support 0.19
