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 2022 for the Business Services division are: Activity Storage Requisition handling Pick packing Data entry Cost Driver Cartons in inventory Requisitions Lines Lines Requisitions Per delivery Budgeted Activity 400,000 30,000 800,000 800,000 30,000 12,000 Cost-Driver Rate $ 0.4925 / carton/month 12.50 1.50 0.80 1.20 30.00 Desktop delivery For the month, the division expects to make 11,700 deliveries to deliver 1,170,000 cartons to customers. Required 1 Required 2 Required 3 What is the total budgeted cost for each activity and for the Business Services division in January 2022? Total Cost Activity Storage Requisition handling Pick packing Data entry-Lines Data entryRequisitions Desktop delivery Total budgeted cost for the division Required 1 Required 2 Required 3 Assume, in contrast to requirement 1, that activity-related information was not available. Rather, the only information available is that the budgeted fixed costs for the month are $1,000,000, and the budgeted variable cost per carton is estimated as $1.30. What is the budgeted total cost for the month using this single volume-based approach? Budgeted cost for the month Required 1 Required 2. Required 3 Dories Supply Chain Management Company offers to install an electronic order-processing system that transmits customer requisitions via the Internet to the Business Services division for immediate pick, packing, and delivery. No requisition handling and data entry will be needed once the system is fully functional. How much savings can the Business Services division expect from switching to the new system before considering the payment to Dories? Show less Expected cost savings, January 2022