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Exercise 10-42(Algo) Activity-Based Budgeting (ABB) with Continuous Improvement [LO 10-6,10-7] OFC Company has...

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Accounting

Exercise 10-42(Algo) Activity-Based Budgeting (ABB) with Continuous Improvement [LO 10-6,10-7]
OFC Company has decided to implement a kaizen (continuous-improvement) program to enhance operational efficiency. After a
careful study, management and employees agree that the firm will be able to reduce cost rates for batch-level activities by 2% and
unit-level activities (other than Storage) by 1% per month during the first year of the program starting February 2022. The firm has
decided to delay the implementation of the program for customer-sustaining and facility-level activities until 2023. The firm expects
he amount of cost-driver usage in each of the next two months to be the same as those in January.
Required:
Identify unit-level and batch-level activities.
What are the total budgeted costs for each activity and for the division as a whole in February and March?
Complete this question by entering your answers in the tabs below.
What are the total budgeted costs for each activity and for the division as a whole in February and March? (Do not round
intermediate calculations.)
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