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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

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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: Budgeted Activity Cost Driver Activity Cost-Driver Rate Storage Cartons in inventory 5 70 , 00 0 $ 0 . 6 02 0 /carton/montl+ Requisition handling Requisitions 64 , 00 0 12 . 5 0 Pick packing Lines 885, 000 1.68 | Data entry Lines 885, 000 0.95 Requisitions 47, 000 1.22 | Deskt0p delivery Per delivery 20,500 37 .00 For the month, the division expects to make 11,600 deliveries to deliver 1,160,000 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 unitlevel 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 customersustaining and facilitylevel activities until 2020. The firm expects the amount of costdriver usage in each of the 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? Camplete this question by entering your answers in the tabs below. Required 1 Required 2 Identify unit-level and batch-level activities. Storage Pick packing Data entryLines Requisition handling Data enlryRequisitions Desktop delivery 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 RequiredZ 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.) Storage Requisition handling Pick packing Data entryLines Data entryRequisitions Desktop delivery

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