The Rupert store of Carlson Mart, a chain of small neighborhood convenience stores, has a Kaizen...
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The Rupert store of Carlson Mart, a chain of small neighborhood convenience stores, has a Kaizen (continuous improvement) approach to budgeting monthly activity costs for each month of 2018. Carlson 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 Rupert store, the cost drivers and their rates, and the cost-driver amount budgeted to be consumed by each activity in January 2018. E (Click the icon to view the four activities and their cost data.) A (Click the icon to view additional cost driver information.) Read the requirements. Requirement 1. What are the total budgeted costs for each activity and the total budgeted indirect cost for March 2018? Begin by calculating the budgeted cost-driver rates for February, then calculate March. (Round your answers to five decimal places, X.XXXXX.) Budgeted Cost-Driver Rates Activity January February March Ordering $ 92.00 Delivery 75.00 Shelf-stocking 24.00 Customer support 0.22 Requirements 1. What are the total budgeted costs for each activity and the total budgeted indirect cost for March 2018? Data Table January 2018 January 2018 Budgeted Budgeted Amount of Cost Driver Used Cost-Driver Soft Fresh Packaged Activity Cost Driver Rate Drinks Snacks Food Ordering Number of purchase orders $ 92 16 26 16 Delivery Number of deliveries 75 14 62 20 Shelf-stocking Hours of stocking time $ 24.00 18 177 94 Customer support Number of items sold $ 0.22 4,200 34,200 10,900 Print Done The Rupert store of Carlson Mart, a chain of small neighborhood convenience stores, has a Kaizen (continuous improvement) approach to budgeting monthly activity costs for each month of 2018. Carlson 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 Rupert store, the cost drivers and their rates, and the cost-driver amount budgeted to be consumed by each activity in January 2018. E (Click the icon to view the four activities and their cost data.) A (Click the icon to view additional cost driver information.) Read the requirements. Requirement 1. What are the total budgeted costs for each activity and the total budgeted indirect cost for March 2018? Begin by calculating the budgeted cost-driver rates for February, then calculate March. (Round your answers to five decimal places, X.XXXXX.) Budgeted Cost-Driver Rates Activity January February March Ordering $ 92.00 Delivery 75.00 Shelf-stocking 24.00 Customer support 0.22 Requirements 1. What are the total budgeted costs for each activity and the total budgeted indirect cost for March 2018? Data Table January 2018 January 2018 Budgeted Budgeted Amount of Cost Driver Used Cost-Driver Soft Fresh Packaged Activity Cost Driver Rate Drinks Snacks Food Ordering Number of purchase orders $ 92 16 26 16 Delivery Number of deliveries 75 14 62 20 Shelf-stocking Hours of stocking time $ 24.00 18 177 94 Customer support Number of items sold $ 0.22 4,200 34,200 10,900 Print Done
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Budgeted costdriver rates Activity January February march Ordering 92 91724 914488... View the full answer
Related Book For
Management and Cost Accounting
ISBN: 978-1405888202
4th edition
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster
Posted Date:
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