Exercise Algo ActivityBased Budgeting ABB with Continuous Improvement LO
OFC Company has decided to implement a kaizen continuousimprovement program to enhance operational efficiency. After a
careful study, management and employees agree that the firm will be able to reduce cost rates for batchlevel activities by and
unitlevel activities other than Storage by per month during the first year of the program starting February The firm has
decided to delay the implementation of the program for customersustaining and facilitylevel activities until The firm expects
he amount of costdriver usage in each of the next two months to be the same as those in January.
Required:
Identify unitlevel and batchlevel 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.
