Activity-Based Budgeting (ABB) with Continuous Improvement OFC Company (Exercise XXXXXXXXXXhas decided to implement a kaizen (continuous-improvement) program to enhance operational efficiency. After a...

Activity-Based Budgeting (ABB) with Continuous Improvement OFC Company (Exercise 10-41) has decided to implement a kaizen (continuous-improvement) program to enhance operational efficiency. After a careful study, management and employees agree that the firm will be able to reduce cost rates for batch-level activities by 2% and unit-level activities (other than Storage) by 1% per month during the first year of the program starting February 2019. The firm has decided to delay the implementation of the program for customer-sustaining and facility-level activities until 2020. The firm expects the amount of cost-driver usage in each of the next two months to be the same as those in January. (Use 4 decimal points for all cost rates.) Required 1. Identify unit-level and batch-level activities. 2. What are the total budgeted costs for each activity and for the division as a whole in February and March? 3. Identify three factors that are likely to be critical for a successful kaizen (i.e., continuous-improvement) program. 4. What are primary criticisms regarding kaizen (i.e., continuous-improvement) budgeting?