:xercise $10-42($Algo$)$ Activity$-$Based Budgeting $($ABB$)$ with Continuous Improvement $[$LO $10-6,10-7]$

FC Company has decided to implement a kaizen $($continuous$-$improvement$)$ program to enhance operational efficiency. After a

areful study, management and employees agree that the firm will be able to reduce cost rates for batch$-$level activities by $2\%$ and

nit$-$level activities $($other than Storage$)$ by $1\%$ per month during the first year of the program starting February $2022.$ The firm has

ecided to delay the implementation of the program for customer$-$sustaining and facility$-$level activities until $2023.$ The firm expects

$$e amount of cost$-$driver usage in each of the next two months to be the same as those in January.

equired:

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?

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Required $1$

Identify unit$-$level and batch$-$level activities.

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