Answer the Following Question(s)using the Information Below

question 170

Essay

Answer the following question(s)using the information below.Sherry and John Enterprises are using the Kaizen approach to budgeting for 2019.The budgeted income statement for January 2019 is as follows:
Under the Kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1% per month.
-The Saskatoon location of Catch Fish Inc.(CFI), a chain of stores that cater to fishing enthusiasts, is preparing its activity-based budget for 2020.CFI has three product categories: tackle, rods & reels, general merchandise like clothing and accessories.The following table shows the four activities that consume indirect resources at the Regina store, the cost drivers , cost driver rates, and the cost driver quantity budgeted to be consumed in each activity in 2020. Required:
1.For each product category calculate the activity-cost per unit sold for each of the four activities.2.Based on the result in "Required 1." which product category is most out of line with regard to the others in terms of activity cost per unit of sales? Comment on a possible cause for this difference.

---

Definitions:

Starting Wage

The initial salary offered to an employee by an employer when they begin a new job.

Excise Taxes

Taxes imposed on specific goods, such as tobacco and alcohol, either as a fixed amount per unit or as a percentage of the price.

Regressive

Relating to a tax system that disproportionately impacts those with lower incomes, or to policies that may reverse political or social progress.

Regressive Tax

A tax imposed in such a way that the tax rate decreases as the taxable amount increases, disproportionately affecting lower-income individuals.