The Elmore store of Gabriel's Corner, a chain of small neighborhood convenience stores, has a Kaizen (continuous improvement) approach to budgeting monthly activity costs for each month of 2018

The Elmore store of Gabriel's Corner, a chain of small neighborhood convenience stores, has a Kaizen (continuous improvement) approach to budgeting monthly activity costs for each month of 2018. Gabriel's Corner 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 Elmore store, the cost drivers and their rates, and the cost-driver amount budgeted to be consumed by each activity in January 2018. (Click the icon to view the four activities and their cost data.) (Click the icon to view additional cost driver information.) Read the requirements. 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 $ 94.00 $ 93.90600 $ 93.81209 Delivery 82.00 81.91800 81.83608 Shelf-stocking 18.00 17.98200 17.96402 Customer support 0.21 0.20979 0.20958 Now calculate total budgeted cost for each activity and the total budgeted indirect cost for March. (Use the rates you calculated above in your calculations. Round your answers to the nearest whole number.) Soft Fresh Packaged Activity Drinks Snacks Food Total Ordering Delivery Shelf-stocking Customer support Total
January 2018 January 2018 Budgeted Amount of Cost Driver Used Budgeted Cost-Driver Soft Fresh Packaged Rate Drinks Snacks Food $ 94 17 27 17 Activity Cost Driver Ordering Number of purchase orders Delivery Number of deliveries Shelf-stocking Hours of stocking time Customer support Number of items sold $ 82 12 65 21 $ 18.00 20 174 93 0.21 4,800 34,400 10,700
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.