OFC Company of Kansa City prints business forms and other specialty paper products

Required information {The following information applies to the questions displayed below] OFC ICompany of Kansas City prints business forms and other specialty paper products, such as writing paper, envelopes, note cards, and greeting cards. Its Business Services division offers inventory management services and desktop delivery on request. The division uses an activity-based costing (ABC) system. The budgeted usage of each activity cost driver and cost-driver rates for January 2019 for the Business Services division are: Budgeted Activity Cost Driver Activity CostDriver Rate Storage Cartons in inventory 498,866 $ 8.5226 {carton/month Requisition handling Requisitions 48,360 23.56 Pick packing Lines 845,366 1.52 Data entry Lines 845,360 6.83 Requisitions 39,369 1.25 Desktop delivery Per delivery 16,560 41.09 [ For the month, the division expects to make 10,800 deliveries to deliver 1,080,000 cartons to customers. OFC Company has decided to implement a kaizen {continuousimprovement) program to enhance operational efciency. After a careful study, management and employees agree that the rm will be able to reduce cost rates for batchlevel activities by 2% and unitlevel activities {otherthan Storage} by 1% per month during the rst year ofthe program starting February 2019. The rm has decided to delay the implementation ofthe program for customersustaining and facilitylevel activities until 2020. The rm expects the amount of costdriver usage in each ofthe next two months to be the same as those in January. Required: 1. Identify unitlevel and batchlevel activities. 2. What are the total budgeted costs for each activity and for the division as a whole in February and March? Complete this question by entering your answers in the tabs below . Required 1 Required ?) What are the total budgetEd costs for each activity and for the division as a whole in February and March ? ( DO not round intermediate calculations .] Budgeted Costs Activity February March Storage Requisition handling Pick packing Data Entry - Lines Data Entry - Requisitions Desktop delivery Divisional totalsComplete this question by entering your answers in the tabs below . Required 1 Required ?) Identify unit- level and batch- level activities . Storage Pick packing Data Entry - Lines Requisition handling Data Entry - Requisitions* Desktop delivery