OFC Company 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: Activity Cost Driver Budgeted Activity Cost-Driver Rate Storage Cartons in inventory 520,000 $ 0.6320 /carton/month Requisition handling Requisitions 54,000 21.50 Pick packing Lines 860,000 1.68 Data entry Lines 860,000 0.81 Requisitions 42,000 1.39 Desktop delivery Per delivery 18,000 43.00 For the month, the division expects to make 11,100 deliveries to deliver 1,110,000 cartons to customers. OFC Company 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. 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?