Everything U Need Is the Campus Store at Upstate College

Essay

Everything U Need is the campus store at Upstate College. Due to the growing importance of used and rented textbooks, the business model for the store is under reevaluation. A part of this process has led to the application of activity-based management and budgeting principles. The store is preparing its activity-based budget for the upcoming July through September quarter, its busiest time of the year. The store classifies its product line into three categories: books and supplies; technology products; and clothing and personal items. The store has developed a listing of five activities that consume indirect resources. The table below lists the activities, their associated cost drivers, the cost driver rates, and the budgeted driver consumption by each activity for each product class in the July through September quarter.
Required:
a. Compute the total budgeted indirect cost for Everything U Need for the July through September quarter.
b. Compute the budgeted indirect cost for each product category for the July through September quarter.