The Stowe

store of Henderson Mart

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a chain of small neighborhood convenience$$ stores, has a Kaizen$($continuous improvement$)$ approach to budgeting monthly activity costs for each month of $2021$

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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 Stowe

$$store$,$ the cost drivers and their$$ rates, and the$$ cost$-$driver amount budgeted to be consumed by each activity in January $2021$

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store, the cost drivers and their rates, and the cost$-$driver amount budgeted to be consumed by each activity in January $2021.$

$($Click the icon to view the four activities and their cost data.$)($Click the icon to view additional cost driver inform.

Read the requirements.

Data table

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 decin

Budgeted Cost$-$Driver Rates

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Each successive month, the budgeted cost$-$driver rate decreases by $0\mathrm{.}4\%$ relative to

the preceding month. So$,$ for example, February's budgeted cost$-$driver rate is

$0\mathrm{.}996$ times January's budgeted cost$-$driver rate, and March's budgeted cost$-$driver

rate is $0\mathrm{.}996$ times the budgeted February rate. Henderson Mart assumes that the

budgeted amount of cost$-$driver usage remains the same each month.