OFC Company of Kansas City prints specialty paper products. Its Business Services division offers inventory-management services and, upon request, desktop delivery. The division uses an activity-based costing system. The budgeted usage of each activity cost driver and cost driver rates for January 2020 for the Business Services division are as follows: Activity Cost Driver Budgeted Activity Cost-Driver Rate Storage Number of cartons 800,000 $0.24625 Requisition handling Requisitions 30,000 $12.50 Pick packing Lines 800,000 $1.50 Data entry Lines 800,000 $0.80 Requisitions 30,000 $1.20 Desktop delivery Deliveries 12,000 $30.00 The division is expected to deliver 800,000 cartons in January 2020. Requirements: 1. What is the budgeted cost for each activity and for the Business Services Division for January 2020? 2. Assume that the Business Services Division has an order from a customer for 10 cartons of paper products. The order will also require 3 requisitions, 10 lines, and desktop delivery. a. What is the budgeted cost of this order under Business Services' activity-based costing system? b. If Business Services costs an order using a single cost rate for the entire division, with only number of cartons as the cost driver, what would be the budgeted cost of this order? c. Explain why the costs for the order in parts a and b are different to such a large extent? d. If you are pricing an order, would you rather use the cost generated in part a or the cost provided in part b? Explain. 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 quick response delivery. No requisition handling or data entry will be needed once the system is fully functional. How much savings can Business Services expect from switching to the new system? List two qualitative factors Business Services should consider before deciding whether to switch to this electronic order processing system