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 460,000 $ 0.6620 /carton/month Requisition handling Requisitions 42,000 14.50 Pick packing Lines 830,000 1.52 Data entry Lines 830,000 0.97 Requisitions 36,000 1.33 Desktop delivery Per delivery 15,000 30.00 For the month, the division expects to make 10,500 deliveries to deliver 1,050,000 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 2022. The firm has decided to delay the implementation of the program for customer-sustaining and facility-level activities until 2023. 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.