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| Stumphouse Cheese is in the process of implementing a cost improvement system with kaizen costing as the basis for budgeting all manufacturing activities. This will be utilized over the next four years in an attempt to become more profitable. The target reduction rate has been set at 5% of fixed overhead costs. Total fixed overhead costs for this year were $900,000. What is the budgeted amount for the next two years using kaizen costing? Current Year +1 , Current Year +2 A. $855,000, $810,000. B. $855,000, Unable to determine. C. $855,000, $812,250. D. $900,000, $855,000. |