50.1K

Verified Solution

Link Copied!

i need both requirements 1 and 2

Requirement 1. What are the total budgeted costs for each activity and the total budgeted inc Begin by calculating the budgeted cost-driver rates for February, then calculate March (Round Budgeted Cost-Driver Rates January February March $ 95.00 Activity Ordering Delivery Shelf-stocking Customer support 85.00 18.00 0.22 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. January 2018 Budgeted Cost-Driver Activity Cost Driver Rate Ordering Number of purchase orders $ 95 Delivery Number of deliveries $ 85 Shelf-stocking Hours of stocking time $ 18.00 Customer support Number of items sold 0.22 January 2018 Budgeted Amount of Cost Driver Used Soft Fresh Packaged Drinks Snacks Food 13 27 13 11 64 19 21 175 92 $ 4.700 34.300 11,100 ed 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? H

Answer & Explanation Solved by verified expert

See Answer