The Troy store of Gabriel's Corner, a chain of small neighborhood convenience stores, has a Kaizen (continuous improvement) approach to budgeting monthly activity costs for each month of 2018. Gabriel's Corner 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 Troy 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 Data Table $ 92.00 82.00 Ordering Delivery Shelf-stocking Customer support January 2018 January 2018 Budgeted 25.00 Budgeted Amount of Cost Driver Used 0.19 Cost-Driver Soft Fresh Packaged Rate Drinks Snacks Food Activity Ordering $ 92 17 25 17 Cost Driver Number of purchase orders Number of deliveries Hours of stocking time $ 82 12 61 21 Delivery Shelf-stocking Customer support 25.00 22 171 93 Number of items sold $ 0.19 4,700 34,100 11,100 - X x More Info Each successive month, the budgeted cost-driver rate decreases by 0.1% relative to the preceding month. So, for example, February's budgeted cost-driver rate is 0.999 times January's budgeted cost-driver rate, and March's budgeted cost-driver rate is 0.999 times the budgeted February rate. Gabriel's Corner assumes that the budgeted amount of cost-driver usage remains the same each month. 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 Gabriel's Corner management overcome them