N2. Forever Mart (FM) has a Kaizen (continuous improvement) approach to budgeting activity area costs for each month of 2022. Each successive month, the budgeted cost driver rate decreasesby 0.3% relative to the preceding month (so, for example, February's budgeted cost driver rate is 0.997 times January's budgeted cost driver rate, and March's budgeted cost driver rate is0.997 times the budgeted February 2022 rate). FM assumes that the budgeted amount of cost driver usage remains the same each month.(Click the icon to view the four activities and their cost data.)Required1. What is the total budgeted cost for each activity and the total budgeted indirect cost for March 2022?2. What are the benefits of using a Kaizen approach to budgeting? What are the limitations of this approach, and how might FM management overcome them?Requirement 1. What is the total budgeted cost for each activity and the total budgeted indirect cost for March 2022?Begin by calculating the budgeted cost driver rates for February. Then calculate March. (Round your answers to five decimal places.)ActivityOrderingDeliveryShelf-stockingCustomer supportBudgeted Cost Driver RatesMarchJanuary February$ 93.0081.0021.000.12 Activities and Cost DataActivityOrderingDeliveryCost DriverNumber of purchase ordersNumber of deliveriesShelf-stockingHours of stocking timeCustomer support Number of items soldPrintJanuary 2022Budgeted CostDriver Rate$93.00$81.00$21.00$ 0.12DoneJanuary 2022 Budgeted Amountof Cost Driver UsedSoftDrinks1412194,800FreshProduce246717834,400PackagedFood14189211,250X

Activity based costing is one of the costing system under which all indirect costs are being…

Forever Mart (FM) has a Kaizen (continuous improvement) approach to budgeting activity area costs for each month of 2022. Each successive month, the budgeted cost driver rate decreases by 0.3% relative to the preceding month (so, for example, February's budgeted cost driver rate is 0.997 times January's budgeted cost driver rate, and March's budgeted cost driver rate is 0.997 times the budgeted February 2022 rate). FM assumes that the budgeted amount of cost driver usage remains the same each month. (Click the icon to view the four activities and their cost data.) Required 1. What is the total budgeted cost for each activity and the total budgeted indirect cost for March 2022? 2. What are the benefits of using a Kaizen approach to budgeting? What are the limitations of this approach, and how might FM management overcome them? C Requirement 1. What is the total budgeted cost for each activity and the total budgeted indirect cost for March 2022? Begin by calculating the budgeted cost driver rates for February. Then calculate March. (Round your answers to five decimal places.) Budgeted Cost Driver Rates

Forever Mart (FM) has a Kaizen (continuous improvement) approach to budgeting activity area costs for each month of 2022. Each successive month, the budgeted cost driver rate decreases by 0.3% relative to the preceding month (so, for example, February's budgeted cost driver rate is 0.997 times January's budgeted cost driver rate, and March's budgeted cost driver rate is 0.997 times the budgeted February 2022 rate). FM assumes that the budgeted amount of cost driver usage remains the same each month. (Click the icon to view the four activities and their cost data.) Required 1. What is the total budgeted cost for each activity and the total budgeted indirect cost for March 2022? 2. What are the benefits of using a Kaizen approach to budgeting? What are the limitations of this approach, and how might FM management overcome them? C Requirement 1. What is the total budgeted cost for each activity and the total budgeted indirect cost for March 2022? Begin by calculating the budgeted cost driver rates for February. Then calculate March. (Round your answers to five decimal places.) Budgeted Cost Driver Rates

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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