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The Troy store of Henderson Mart, a chain of small neighborhood convenience stores, has a Kaizen (continuous improvement) approach to budgeting monthly activity costs for
The Troy 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 Troy 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 information.) Read the requirements. Data table
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